CFTC Regulatory Update

Introduction

The Commodity Futures Trading Commission (the "Commission" or "CFTC") is proposing for public comment certain amendments to Rule 18.05 which would (i) require a person holding or controlling a reportable futures or option position to retain books and records and make available to the Commission upon request any pertinent information with respect to all other positions and transactions in the commodity in which the trader has a reportable position, including positions held or controlled or transactions which are executed over-the-counter, on exempt trading platforms, or on foreign exchanges and (ii) expand its applicability with respect to hedging activity. 72 Fed. Reg. 34413 (June 22, 2007). According to the Commission, these amendments are designed to enhance its ability to deter and prevent price manipulation or other disruptions to market integrity, ensure the avoidance of systemic risk, and clarify the meaning of the rule. Comments must be received by July 23,