Federal Register: CFTC Proposes Increased Position Limits for Security Futures Products

The CFTC proposal to increase position limits on security futures products ("SFPs") was published in the Federal Register. Comments must be submitted by October 1, 2018.

As previously covered, the proposal would amend CFTC Rule 41.25, which, among other things, addresses the criteria that exchanges must apply when setting position limits on SFPs. The rule mandates position limits for SFPs based upon the average trading volume and number of shares in an underlying security or securities. The proposed amendments are intended to provide exchanges with more flexibility in setting limits, and level the regulatory playing field for SFPs and security options.