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May 22, 2020

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CFTC Unanimously Approves Measures Related to Position Limits and Position Accounting for Security Futures Products and Public Rulemaking Procedures

On September 16, the Commodity Futures Trading Commission (CFTC) unanimously approved 1) a final rule on security futures product (SFP) position limits and position accountability for (Final Rule); and 2) a proposed rule on public rulemaking procedures (Proposed Rule).

The Final Rule would, among other changes, amend the position limit rules applicable to SFPs by increasing the default maximum level of equity SFP position limits that designated contract markets may set.

The Proposed Rule would amend part 13 of the CFTC’s regulations by eliminating the provisions that set forth the procedures for formulating, amending or repealing rules or regulations. The CFTC believes that it is unnecessary to codify the rulemaking process in a CFTC regulation due to the Administrative Procedure Act governing the CFTC’s rulemaking process. Comments on the Proposed Rule must be submitted no later than 30 days following publication of the Proposed Rule in the Federal Register.

The text of the Final Rule and the Proposed Rule are available here.

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About this Author

Christian B. Hennion, Finance Attorney, Katten Muchin Law Firm

Christian B. Hennion concentrates his practice in financial services and asset management matters, including counseling fund managers, registered investment advisers and commodity trading advisors on both transactional and regulatory matters. Chris has advised a wide range of US and international managers, from start-ups to large institutions, regarding a variety of matters, including private fund launches and reorganizations, advisory engagements, Investment Advisers Act and Commodity Exchange Act compliance obligations, Securities and Exchange Commission (SEC) and Commodity Futures...

Stanley V. Polit, Katten Muchin, Financial Services lawyer, Corporate Regulatory Matters Attorney

Stanley Polit concentrates his practice in transactional, corporate and regulatory aspects of financial services matters. Stan is able to provide legal services to a wide variety of clients including proprietary trading firms, hedge funds, broker-dealers, registered investment advisers, commodity trading advisers, financial institutions and general corporate clients.

Prior to joining Katten, Stan served as a council member for a national crisis management firm, where he specialized in crisis communication and merged media strategies. He has lectured extensively and conducted trainings related to these topics at numerous national and international conferences, including the National Communication Association's National Convention, the International Crisis and Risk Communication Conference and the Disaster Recovery Journal's World Business Continuity Conference.