ICE Issues Exchange Notice Providing Guidance on IFUS Rule 6.13 - Enforcement of Position Limits and Position Accountability Levels

ICE issued an Exchange Notice to provide guidance on ICE Futures U.S. ("IFUS") Rule 6.13 regarding position accountability levels. ICE clarified that, while owning or controlling a position exceeding an accountability level would not constitute a violation of IFUS Rule 6.13, the position should be managed in a manner that avoids substantial market impact or undue influence on prices. ICE's guidance stated that:

• If a Person holds a position in excess of an accountability level at a time when spot-month limits are not in effect, IFUS Market Regulation (Market Regulation) may initiate an accountability review, and may require a Person to submit information regarding the nature and size of the position, the intent and trading strategy, positions held in related markets, and other relevant documentation.
• If there is a concern about the size and nature of the position, Market Regulation may require that the Person not increase the position further, or may require the orderly liquidation of some or all of the position. This may occur if it is determined that the position could have an undue influence on the market or price discovery process, or if there is a concern that the liquidation and/or management of the position may cause aberrant price movements or generally be disruptive to a market.
• If a Person is found to have engaged in disruptive activity, or fails to comply with an instruction from Market Regulation related to an accountability review, the Person may also be subject to disciplinary action in accordance with Exchange rules.

View notice in full here (links externally to ICE website).