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CFTC Suspends Need of Formal Notice for Position Disaggregation Relief

On August 10, the Commodity Futures Trading Commission (the CFTC) issued no-action relief, eliminating the need for certain persons otherwise required to aggregate positions with certain other persons for CFTC position limit purposes to pro-actively file with the CFTC, beginning August 14, formal written notices supporting disaggregation of positions with such other persons relying on the CFTC’s owned-entity exemption, independent account controller exemption and certain other exemptions from aggregation available under CFTC Rule 150.4(b)(1). Upon request by the CFTC or a designated contract market (DCM), however, such persons will have to file such a formal written notice with the CFTC or DCM, as requested, within five business days. However, this is an after-the-fact obligation, not a pro-active obligation. This relief will be in effect through at least August 12, 2019.

There is other helpful relief provided in the no-action relief, including a revision of definitional conditions for purposes of complying with the aggregation requirements for eligible entities, independent account controllers and commodity trading advisors, and that a notice filing, when requested, needs to include information only related to the account or person expressly identified by the CFTC or DCM in the request. Information related to other persons need not be included.

The CFTC’s No-Action letter is available here.


©2018 Katten Muchin Rosenman LLP


About this Author

Gary DeWaal, Securities Attorney, Katten Law Firm, New York
Special Counsel

Gary DeWaal focuses his practice on financial services regulatory matters. He counsels clients on the application of evolving regulatory requirements to existing businesses and structuring more effective compliance programs.

Previously, Gary was a senior managing director and group general counsel for Newedge, where he oversaw the worldwide Legal, Compliance, Financial Crimes Prevention (including AML) and Regulatory Developments departments. He also worked for the US Commodity Futures Trading Commission's Division of Enforcement in New York. For several years, Gary taught a course...