Firms Meet with CFTC to Discuss Comments on Proposed Position Limits Rules

Multiple corporations, including The Hershey Company and J.M. Smuckers Co., met with the CFTC to discuss a comment letter submitted on January 22, 2015 regarding CFTC Position Limit Proposals.

The comment letter argued that the CFTC-proposed rules "conflict with commercial market practices" for many commodities and could impact negatively on the ability of commercial participants in the coffee, cocoa and sugar product markets to hedge risks using ICE Futures U.S. (the "Exchange") contracts.

Additionally, the letter explained that the proposed rules would "transform" the role of the CFTC from one of oversight to that of directly regulating "markets over which the Exchange and other exchanges, respectively, currently exercise such authority." The letter requested that the CFTC allow for a "long transition period" if it moves forward with finalizing the proposals.

See: CFTC Ex Parte Meeting Notice; Comment Letter.Related news: CFTC Reopens Comment Periods on Position Limits for Derivatives and the Aggregation of Positions (Fed. Reg.) (February 25, 2015).