Position Limits Regulation - Comment Letter - United States Commodity Funds - October 21, 2010
Advance Comments on Position Limits and the Definition of "Major Swap Participant" Under the Dodd-Frank Wall Street Reform and Consumer Protection Act
October 21, 2010
The comment letter, posted October 21, 2010, is the second on the topic from USCF and opposed position limit proposals from the CFTC. The letter notes:<ref>[http://www.cftc.gov/ucm/groups/public/@swaps/documents/file/derivative26sub102110-sutherla.pdf United States Commodity Funds -- Comments to Position Limits and Definition of Maj or Swap Participant]. Sutherland Asbill & Brennan LLP. Retrieved on November 18, 2010.</ref>
"We continue to believe that the ability of USCF (and other firms that manage similar publicly traded, un-levered, passive commodity funds) to prudently meet the investment objectives of the commodity pools that it manages will likely be significantly hampered by the imposition of restrictive limits. We also believe that the significant additional regulatory requirements to which USCF and the Funds would be subject if USCF or any of the Funds are deemed to be "major swap participants" under the Act would similarly hamper the ability of USCF to efficiently meet the Funds’ investment objectives. As a result, and more importantly, the value of the exchange traded pools managed by USCF to the hundreds of thousands of investors in our pools, and the several million investors in all similar pools currently in operation in the United States, could be adversely affected by both (1) the adoption of the Dodd-Frank Position Limits and (2) classification of USCF as a major swap participant under the Act."