Regulatory Update September 2015

Last week, the CFTC issued a supplemental notice of proposed rulemaking on aggregation of positions under the CFTC’s position limits regime. Based on initial review, it appears that the CFTC’s new proposed aggregation rule will be a great outcome for the PEGCC efforts on this topic.

The proposed rule’s approach appears consistent with the relief that the PEGCC has sought on this issue since 2012. The proposed aggregation relief is also now separate from the more contentious position limits rule, which is a favorable development which we sought. Specifically, Chairman Massad’s remarks related to the proposed rule indicate in relevant part that:

“This new proposal aims to make a significant, streamlined change to the process for waiving aggregation requirements. Under the proposal, instead of requiring a participant to apply for and obtain prior approval from the Commission to waive aggregation, we would rely instead on a notice filing. A participant who owns 50 percent or more of an entity can obtain the exemption simply by attesting to the Commission that it has no control over its trading – and no access to its information. This is the same process we now have if you own more than 10 percent but less than 50.”

Read the full press release here.