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Effective Date: Position Limits for Derivatives

CFTC issued a final rule to conform regulations concerning speculative position limits to the relevant Dodd-Frank Act amendments to the Commodity Exchange Act (CEA). Among other regulatory amendments, CFTC adopted: (a) new and amended federal spot-month limits for 25 physical commodity derivatives; (b) amended single month and all-months-combined limits for most of the agricultural contracts currently subject to federal position limits; (c) new and amended definitions for use throughout the position limits regulations, including a revised definition of “bona fide hedging transaction or position” and a new definition of “economically equivalent swaps”; (d) amended rules governing exchange-set limit levels and grants of exemptions therefrom; (e) a new streamlined process for bona fide hedging recognitions for purposes of federal position limits; (f) new enumerated bona fide hedges; and (g) amendments to certain regulatory provisions that would eliminate Form 204 
while also enabling CFTC to leverage and receive cash-market reporting submitted directly to the exchanges by market participants. Read more here.

  • March 15, 2021
  • Time: All Day