Alternative Investment Management Association Representing the global hedge fund industry
Section 737 of the Dodd-Frank Act mandates the Commodity Futures Trading Commission (CFTC) to establish position limits for futures and options contracts traded on a designated contract market and economically equivalent swaps. On 26 January 2011, the CFTC published proposed rulemaking for the establishment of position limits for 28 core physical commodity futures and options contracts and their economic equivalents. Final Rules were published in November 2011.
In September 2012, the US District Court for the District of Columbia vacated the CFTC Final Rules on the basis that the CFTC misinterpreted its statutory authority to impose such limits.
On 5 November 2013, the CFTC approved proposals for amended rules on position limits for derivatives, in addition to the aggregation of positions. These have been published in the Federal Register and are subject to deadlines of 10 February 2014 and 14 January 2014, respectively. AIMA is currently working on its formal response.
CFTC Final Rule – Position Limits for Futures and Swaps (November 2011)
CFTC Proposed Rulemaking on Position Limits for Derivatives (November 2013)
CFTC Proposed Rulemaking on Aggregation of Positions (November 2013)
CFTC request for comments on Position Limits for Derivatives (January 2011)