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Dodd Frank, Mifid

CFTC proposes position limits rules

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.

 

About avivhandler

Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on the regulation of the commodity, energy and financial markets. He has more than 23 years of experience in the financial, energy and commodity markets, covering regulatory compliance, credit, risk and financial technology. Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy and Commodity Regulation. Before that, he founded Coherence, a consulting firm specializing in credit risk in commodity and energy trading as well as software product management. The credit practice ultimately became part of Sirius Solutions, where he was the Managing Director of Europe. He has also held management roles at KWI and Iris Financial, among other organizations. Mr. Handler holds a degree in computer science from Imperial College, University of London.

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