CFTC extends position limit relief to two years 14 August 2017Washington DC Reporter: Mark Dugdale
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The Commodity Futures Trading Commission (CFTC) will not enforce certain position aggregation requirements until 12 August 2019.
Amended CFTC Regulation 150.4 was due to be enforced from 14 August, but the CFTC extended no-action relief to affected market participants following calls to do so from trade groups and the implementation of US President Donald Trump’s de-regulation agenda.
Regulation 150.4, which was amended toward the end of 2016, determines which accounts and positions a person must aggregate for the purpose of determining compliance with the applicable position limit levels.
Exemptions do apply and can be sought, but trade groups including the Securities Industry and Financial Markets Association complained that the requirement to file notices on a prospective basis in search of an exemption would impose significant operational challenges and burdens.
As a result, the CFTC extended no-action relief for affected market participants until 12 August 2019. The delay was originally implemented in February, following Trump’s executive order instructing US agencies to cut regulation of financial services.
Specifically, the CFTC will not commence an enforcement action against any person for violating any position aggregation requirement in Regulation 150.4 when they would be otherwise in compliance but for the fact that they do not submit a notice that they are relying on an exemption.
Market participants taking advantage of the no-action relief do have to file a notice within five business days after receiving a request from the CFTC.
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