Last Thursday the CFTC unveiled the latest and possibly final proposal for mandatory position limits on certain commodity derivative contracts. This is the latest version of the rules which formed part of the Dodd Frank Act but which so far have not been implemented (see here).
The new version proposes several changes to the previously published documents:
- There will be limits on 25 contracts of which 16 are new. The new limits are only on “spot month” contracts.
- The number of “bona fide hedge” categories has been expanded.
- The process for applying for a hedge exemption has been streamlined.
The announcement from the CFTC can be found here, and the rule document here. This article on Bloomberg and this one on FT.com summarise the announcement, with this article on Lexology by Katten Muchin Rosenman LLP providing more details.