April 25, 2024
Volume XIV, Number 116
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Chicago Mercantile Exchange (CME) Group Exchanges Adopt Revised Rules Regarding Transfer Trades and Concurrent Long and Short Positions
Friday, March 14, 2014

On March 10, a self-certified rule change related to transfer trades and concurrent long and short positions submitted by the Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange and Commodity Exchange (Exchanges) became effective. Under the amended transfer trade rule: (1) the president or chief compliance officer of the clearing house may permit a transfer to correct an error outside of the three-day window permitted under existing rules; (2) the chief regulatory officer may approve a transfer to facilitate a restructuring or consolidation of a fund or commodity pool; and (3) the president of the clearing house may permit a transfer of cleared-only products under certain specified circumstances. The revised rule regarding concurrent long and short positions: (1) eliminates the restrictions on netting down contracts that are not subject to a spot-month position limit; (2) increases to two percent of reported open interest the amount of concurrent long and short positions in physically delivered futures contracts that can be netted to correct an error; and (3) prohibits the reestablishment of positions that have been netted down.

The rule submission is available here.

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