Position Limits Regulation - Aggregation - Comment Letters

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Dodd-Frank Timeline, Aggregation for Position Limits for Futures and Swaps
Proposal Date Re-proposal Date Comment Deadline Reopened September 29, 2015)
May 30, 2012 November 15, 2013 November 13, 2015

This page contains comment letters related to the CFTC proposed rule on aggregation limits for position limits.

Futures Industry Association - June 29, 2012

Aggregation of Position Limits for Futures and Swaps
June 29, 2012,

In the comment letter, FIA highlights which sections of the proposed rule with which agrees, such as disaggregation relief for owned entities, and offers suggestions for how the rule could be improved.

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Managed Funds Association - June 28, 2012

Aggregation of Position Limits for Futures and Swaps
June 28, 2012,

From the comment letter:

"MFA generally supports the disaggregation relief for “owned entities” (i.e., an entity owned by another person) provided in the Aggregation Proposal. MFA believes, however, that the Aggregation Proposal should be clarified to permit disaggregation in instances of commonly owned entities that share certain employees who do not control trading decisions, even if such employees have knowledge of trading decisions. MFA also believes that Commission staff should be provided with the authority to permit disaggregation on a case-by-case basis where passive ownership in the owned entity exceeds the 50 percent ownership threshold established by the Aggregation Proposal."

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Cargill - June 28, 2012

Aggregation of Position Limits for Futures and Swaps
June 28, 2012,

In the comment letter, Cargill makes reference to its March 28, 2011 comment letter in which it expressed disapproval with certain aspects of the proposed rule. In the current letter, Cargill states that it "supported the "owned non-financial entity" (ONFE) exemption in the proposed rule and was disappointed when this exemption was not included in the final position limits rule."

Had it been included, Cargill argues, this proposed rulemaking would not have been necessary.

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ISDA/SIFMA - June 29, 2012

Aggregation of Position Limits for Futures and Swaps
June 29, 2012,

From the comment letter:

"While we appreciate the Commission’s attempt to address one of several serious deficiencies in its Position Limits Rule, it must be recognized that the Proposed Aggregation Rule purports to amend only a portion of a rule that is fundamentally flawed. The Position Limits Rule establishes the commodities and positions that will be aggregated, and the limits under which the Proposed Aggregation Rule will operate, but it was promulgated without finding that position limits were necessary or appropriate and without conducting an adequate cost-benefit analysis. The persistent substantive and procedural flaws in the Position Limits Rule necessarily affect the proposed aggregation amendments. Moreover, while the Aggregation Notice is a positive step in the Commission’s consideration of position limits, it continues to impose unnecessary burdens and to rest upon a misunderstanding of the Commission’s statutory responsibilities."

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Better Markets - June 29, 2012

Aggregation of Position Limits for Futures and Swaps
June 29, 2012,

From the comment letter:

"Congress gave the CFTC a clear mandate to set aggregate position limits. One consequence of that mandate is that some firms will have to adapt their previous business practices. This is a consequence of the law, and the CFTC has neither good reason nor authority to change the law."

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Alternative Investment Management Association - June 29, 2012

Aggregation of Position Limits for Futures and Swaps
June 29, 2012,

From the comment letter:

"Overall, AIMA supports the policy objectives of the proposed rules contained within the Notice. However, it is vital for industry participants that proportionality is ensured and legal certainty maximised so that they are able to continue providing benefits, such as liquidity, to the commodities market and may confidently budget for, develop and adopt systems and procedures accordingly to ensure their efficient compliance."

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References

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