Journal of Investment Compliance Publishes Akin Gump Article on CFTC Limit Aggregation Rules
Journal of Investment Compliance has published the article “CFTC adopts amendments to position limit aggregation rules,” written by Akin Gump investment management partner JP Bruynes, senior counsel Jason Daniel and associate Libbie Walker. The article discusses the final position limit aggregation rules and exemptions pertaining to derivative positions in nine agricultural commodities adopted by the Commodity Futures Trading Commission (CFTC) in December 2016.
The authors explain that the rule provides that, “unless an exemption from aggregation is available, all positions in accounts for which any person, directly or indirectly, controls the trading or holds a 10 percent or greater ownership or equity interest must be aggregated with other positions held, and trading done, by such person.”
Bruynes, Daniel and Walker proceed to discuss the aggregation exemptions and notice filing requirements, and conclude that market participants should begin to make “necessary preparations if affected, particularly those currently relying on the relevant pool participant, IAC (independent account controller) or FCM (futures commission merchants) aggregation exemptions who are now required to make a notice filing.”