The controversy over position limits
In-depth article analyzing the CFTC's efforts to implement new authority to impose federal position limits on derivatives. The article quotes a Cadwalader attorney regarding the scope of the rules being proposed by the CFTC and the methodology being employed to calculate limits as they would apply to swaps.
The article also observes that the proposed aggregation requirement could force commodity exchange-traded funds to aggregate their positions leaving them vulnerable to breaching the proposed limits.
Publication
Date
February 3, 2011
Cross References
Dodd-Frank Act, Title VII, Secs. 737