August 10, 2022

CFTC Staff Extends Relief from Position Limits Aggregation Requirement

The CFTC Division of Market Oversight ("DMO") extended no-action relief from aggregation requirements under the current CFTC position limits rule. The previously granted relief was set to expire on August 12, 2022 and the extension goes until August 12, 2025 or, alternatively, when the CFTC adopts a new rule.

As previously covered, the relief, initially granted by CFTC Letter 17-06, was previously extended by CFTC Letter 17-37 and CFTC Letter 19-19. The new extension provides continued relief for three more years from certain notice filing requirements of persons seeking an exemption from CFTC Rule 150.4(c) ("Aggregation of positions"). Among other things, DMO cited the January 2021 amendments to the position limits rules - aspects of which have compliance dates of January 1, 2023 - as one reason to further extend the relief.

DMO granted the relief subject to compliance with (i) streamlined notice filing requirements, (ii) revised definitional conditions for eligible entities, independent account controllers and commodity trading advisors and (iii) limited aggregation requirements for the "substantially identical trading strategies" rule.

CFTC Commissioner Summer K. Mersinger criticized the agency for "kick[ing] the can down the road" for another three years.