The CFTC requested comments on a proposed supplement to its December 2013 position limits proposal, which (i) modifies the procedures for seeking exemptions from speculative position limits for non-enumerated bona fide hedging, and (ii) defines procedures for recognizing certain anticipatory bona fide hedge positions. The CFTC's request was published in the Federal Register.
The proposed supplement provides a new way for exchanges and swap execution facilities ("SEFs") to recognize certain positions in commodity derivative contracts as non-enumerated bona fide hedges or enumerated anticipatory bona fide hedges. The procedures in the supplement exempt certain spread positions from federal position limits, subject to CFTC review. Additionally, the proposal clarifies the general definition of "bona fide hedging position" for physical commodities under the standards set forth in CEA Section 4a(c).
In a separate action, the CFTC proposed delaying the requirement that designated capital markets and SEFs set and monitor position limits on swaps until such time as the markets and facilities that are required to do so have been granted access to the necessary data to accomplish the task.
Comments on the proposed supplement, which must be read in conjunction with the notice of proposed rulemaking that was issued in December 2013, must be submitted by July 13, 2016.
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