ICI Submits Comments on Proposed Aggregation of Positions Rule
The Investment Company Institute ("ICI") submitted comments to the CFTC regarding the proposal to modify the aggregation provisions of CFTC Rules Part 150 ("Limits on Positions").
According to the ICI, as investors in the futures and swaps markets, investment companies that are registered under the Investment Company Act of 1940 support the objectives of preventing market manipulation and price shocks in commodity markets. However, the ICI stated, the proper application of the aggregation provisions, including the proposed Independent Account Controller ("IAC") exemption from the aggregation requirement, is critical to ensuring a reasonable imposition of positions limits.
The ICI proposed certain changes and requested clarifications regarding the proposal. Specifically, the ICI stated, it believes that an investment adviser to registered funds should not be required to aggregate the positions of such funds for purposes of the position limits rule. Additionally, the ICI requests modification of the proposed IAC exemption to reflect increased diversity in the types of market participants that may act as IACs. The ICI also recommended that the CFTC not adopt the proposed requirement to aggregate positions in accounts of pools with "substantially identical trading strategies" to ensure that the exemptions from aggregation remain available to registered funds.
See: ICI Comment Letter. Related news: MFA Submits Comments to CFTC Regarding Proposed Aggregation of Positions Rule (February 10, 2014); CFTC Publishes Extension of Comment Period for Aggregation of Position-Proposed Rule (Fed. Reg.) (January 14, 2014); CFTC Publishes Proposed Rules for Aggregation of Positions (Fed. Reg. Version) (November 15, 2013) Key Differences between the Recent CFTC Position Limits Proposal and the Previously Vacated Final Position Limits Rule (with Delta Strategy Group Summary) (November 18, 2013) Cadwalader Memo on Proposed Position Limits and Aggregation Rules (with Lofchie Comment) (November 6, 2013); CFTC Approves Position Limits Proposal (with Lofchie and Zwirb Comments and Delta Strategy Group Summary) (November 5, 2013) MFA Files Comments to CFTC on Position Limits Aggregation Proposal (July 2, 2012).