position limits

The Commodity Futures Trading Commission (CFTC) today approved a notice of proposed rulemaking that would modify the CFTC’s aggregation provisions for limits on speculative positions. The proposed rulemaking would permit any person with a greater than 10 percent ownership or equity interest in an entity to disaggregate the owned entity’s positions, provided there are protections and firewalls in place to ensure trading decisions are made independently of one another.

Tim Ryan, president and ceo of SIFMA, today issued the following statement on the final regulations for position limits for futures and swaps issued today by the Commodity Futures Trading Commission:

The Commodity Futures Trading Commission (CFTC) will hold a public meeting on Tuesday, October 18, 2011, at 9:30 a.m., on the following topics:

(1) Final Rule on Derivatives Clearing Organization General Provisions and Core Principles;

(2) Final Rule on Position Limits for Futures and Swaps; and

(3) Consider a Notice of Proposed Amendment to Effective Date for Swap Regulation.

The meeting is open to the public.

Statements for the record on each rule:

Position Limits

I support the proposed rulemaking to establish position limits for physical commodity derivatives. The CFTC does not set or regulate prices. Rather, the Commission is directed to ensure that commodity markets are fair and orderly to protect the American public.

Commissioner Scott D. O’Malia

Introduction

Commissioner Bart Chilton

I have been reluctant to support the Commission’s issuance of a position limit proposal because what has been proposed so far has not met the congressionally mandated implementation schedule. I have been clear about this and have stated that since there is not support on the Commission to implement position limits on time, we should institute an interim position "points" system.

Statement of Bruce Fekrat, Senior Special Counsel, Division of Market Oversight

Good afternoon Mr. Chairman, Commissioners. Today staff is recommending the Commission approve a notice of proposed rulemaking to establish position limits for certain derivatives.