Temporary Waiver of Annual Application Update for Position Limit Exemptions


On November 18, 2011, the Commodity Futures Trading Commission (“CFTC”) final rules governing position limits and exemptions were published in the Federal Register. These rules, which become effective 60 days after the CFTC further defines the term “swap,” outline specific requirements for obtaining an exemption from federal position limits. As a result of the final CFTC rules, various types of exemptions authorized by Rule 559 will no longer be applicable, while additional types of exemptions will be added. Further information on the revisions to the types of exemptions from speculative position limits that will be permitted pursuant to Rule 559 will be the subject of a future Market Regulation Advisory Notice.

In light of the fact that the new CFTC rules will likely be effective in the near future and will require new applications to be filed with the Exchanges, we are temporarily waiving the annual updated application filing requirements through May 31, 2012. This temporary waiver is intended to reduce the administrative burden on both market participants operating under an exemption and the Exchanges. Should it appear that the final rules will not be in effect prior to May 31, the Exchanges will review whether an extension is warranted and will advise the marketplace accordingly.


There are rules and.......... what rules?





"These rules, which become effective 60 days after the CFTC further defines the term “swap,” outline specific requirements for obtaining an exemption from federal position limits."

Can you say bullshit?