At a public meeting on November 5, the Commodity Futures Trading Commission (CFTC) voted to propose amendments to its rules requiring the aggregation of certain accounts for purposes of complying with CFTC speculative position limits. The proposed aggregation rules would continue the current practice of evaluating positions on the basis of both ownership and control. These rules require the aggregation of all positions in accounts in which a trader either (i) holds a direct or indirect ownership of 10 percent or more, or (ii) controls trading, by power of attorney or otherwise. As summarized below, the proposal notably retains (with some modifications) many of the “disaggregation” exemptions that are available under existing CFTC Regulations and would also create certain new exemptions.
At the same meeting, the CFTC approved a separate companion release that would expand the CFTC’s position limit authority over 28 physical commodity futures contracts and certain economically equivalent instruments, which will be the subject of a separate client advisory. Each of these rule proposals will be open for public comment for a period of 60 days following its publication in the Federal Register.