The Commodity Futures Trading Commission has approved a proposed rule on position limits for derivatives. The proposal includes new and or amended federal spot limits for 25 physical commodity derivatives and physically settled linked cash-settled futures. National Grain and Feed Association’s Vice President of Marketing Todd Kemp says it’s something they’ve been waiting on for some time.
He says the proposed rule is an improvement over the past rule and provides more certainty.
Kemp says NGFA is studying the proposal and will be submitting comments once it’s published in the federal register. He says due to the length of the proposal that will take some time.
The CFTC proposal establishes a new process that would streamline requests from bona fide hedge exemptions for both exchange-set and federal position limit requirements. It also eliminates multiple duplicative reporting requirements for information currently available to the Commission from exchanges.
