CFTC Amends Position Limit Rules for Security Futures Products

The position limit rules are being amended by:

• Increasing the default maximum level of equity SFP position limits that designated contract markets (DCMs) may set
• Modifying the criteria for setting a higher position limit and position accountability level by relying primarily on estimated deliverable supply
• Adjusting the time during which position limits or position accountability must be in effect

On July 31, 2018, CFTC published a proposal to amend regulation 41.25 to update the position limit rules for SFPs to provide regulatory comparability with equity options, foster innovation by providing a framework for position limits on SFPs that are not covered under the existing rules, and provide flexibility to DCMs in setting position limits for such products. CFTC received one substantive comment letter on the proposal, from OneChicago, LLC. CFTC has considered comments received in response to the proposal and is adopting the proposal with a few modifications.

Related Link: Federal Register Notice

Effective Date: November 26, 2019

Keywords: Americas, US, Banking, Securities, Position Limit, Designated Contract Markets, Security Futures Product, CFTC