CFTC Position Limits for Derivatives


SIFMA and the International Swaps and Derivatives Association, Inc. (ISDA) provide comments to the Commodity Futures Trading Commission (CFTC) on the CFTC the Notice of Proposed Rulemaking for Position Limits for Derivatives, RIN 3038-AD99.

The groups remain deeply concerned with many aspects of the new Proposal, and  continue to challenge the fundamental premise upon which the CFTC argues that it has authority to impose position limits under Dodd-Frank. For these reasons, and based on the concerns identified in this letter and in the groups’ previous comments. In addition, they do not believe that the CFTC should go forward with the Proposal until such time as it is able to demonstrate that the statutory pre-requisites to imposing position limits have been satisfied, and until such time as the CFTC has meaningfully evaluated the costs and benefits of the rules it intends to impose.

This comment letter is organized into two sections—a legal analysis of the Proposal in the context of the CFTC’s statutory position limits authority, and comments on the substantive provisions of the Proposal.


Submitted To


Submitted By







Ms. Melissa Jurgens
Commodity Futures Trading Commission
Three Lafayette Centre
1155 21st Street NW.
Washington, DC 20581

Re: Notice of Proposed Rulemaking – Position Limits for Derivatives (RIN 3038-AD99)

Dear Ms. Jurgens:

The International Swaps and Derivatives Association, Inc. (“ISDA”)1 and the Securities Industry and Financial Markets Association (“SIFMA”)2 appreciates the opportunity to provide the
Commodity Futures Trading Commission (the “CFTC” or “Commission”) with comments and recommendations regarding the Notice of Proposed Rulemaking for Position Limits for
Derivatives (the “Proposal”).3 In submitting this letter, we also reference and re-incorporate the previous comments we have submitted to the Commission (our “Previous Comments”)4 with respect to the CFTC’s prior effort to impose position limits across futures and swaps (the “Original Position Limit Rules”).5

The Proposal would impose speculative position limits on futures and option contracts in 28 energy, metals, and agricultural commodities (“core referenced futures contracts”) and their
economically equivalent swaps (collectively, “referenced contracts”), pursuant to Section 4a(a) of the Commodity Exchange Act (the “CEA”),6 as amended by Section 737 of the Dodd-Frank
Wall Street Reform and Consumer Protection Act (“Dodd-Frank” or the “Dodd-Frank Act”).7 The Proposal also contains provisions that would exempt certain bona fide hedging positions
from the position limits.8

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