CME Group Allows Exceptions to Position Limits Aggregation Rule

The Chicago Mercantile Exchange ("CME") Group amended the CME Aggregation Rule by adding exceptions to its requirement to aggregate commonly held positions for products that are not subject to federal position limits.

The amendment establishes that positions carried in the separate accounts of independent account controllers will not be aggregated for position limit purposes if the entities:

• do not have knowledge of one another’s trading decisions,

• trade pursuant to separately developed independent trading strategies, and

• create and enforce written procedures that preclude each entity from having knowledge of, gaining access to, or receiving data concerning the trades of the other entities.

The amendment will become effective on April 4, 2016.