CFTC Proposes Revisions to Large Trader Position Reporting Requirements

The CFTC proposed amendments to large trader position requirements for futures and options that would "modernize" how data is reported and expand the data to be reported.

According to the CFTC, Regulation 17.00(g) ("Information to be furnished by futures commission merchants, clearing members and foreign brokers") uses a record format that has become "error-prone, and difficult to use." The CFTC is proposing to remove the "outdated" 80-character record format and replace it by implementing "modern data submission standards." The CFTC would delegate authority to the Director of the Office of Data and Technology to establish a submission standard.

The CFTC proposed amending the specific data to be submitted. The new data elements would provide more information as to the relevant transaction, including economic terms and certain matters such as changes in positions.

Comments must be submitted within 60 days of publication in the Federal Register.

Statements

CFTC Commissioner Caroline D. Pham. Ms. Pham stated that the proposal would provide the CFTC with an "up-to-date and accurate picture of the markets" and provide end-users with the "necessary information for price discovery and risk management." She added that updating the reporting requirements will help the CFTC to "assess the financial risks presented by large customer positions, such as futures commission merchants and derivatives clearing organizations."

CFTC Commissioner Christy Goldsmith Romero. Ms. Romero said the proposal responds to the "need to determine positions across markets for more comprehensive data, and for data quality improvements" and strengthens the CFTC’s ability to "identify disruptive or manipulative trading activity."