CFTC finalized the rule amending the position limit requirements applicable to security futures products (SFP). The final rule will also provide designated contract markets (DCMs) with the discretion to apply limits to either a person's net position or a person's position on the same side of the market. The rule includes position limit requirements and related guidance and acceptable practices for DCMs to apply in adopting position limits for SFPs based on products other than an equity security. The final rule is effective from November 26, 2019.
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
ECB published Guideline 2021/975, which amends Guideline ECB/2014/31, on the additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral.
EIOPA published a report, from the Consultative Expert Group on Digital Ethics, that sets out artificial intelligence governance principles for an ethical and trustworthy artificial intelligence in the insurance sector in EU.
HKMA published the seventh and final issue of the Regtech Watch series, which outlines the three-year roadmap of HKMA to integrate supervisory technology, or suptech, into its processes.
EC launched a targeted consultation to improve transparency and efficiency in the secondary markets for nonperforming loans (NPLs).
BIS, Danmarks Nationalbank, Central Bank of Iceland, Norges Bank, and Sveriges Riksbank launched an Innovation Hub in Stockholm, making this the fifth BIS Innovation Hub Center to be opened in the past two years.
FDITECH, the technology lab of FDIC, announced a tech sprint that is designed to explore new technologies and techniques that would help expand the capabilities of community banks to meet the needs of unbanked individuals and households.
EC released the EU Taxonomy Compass, which visually represents the contents of the EU Taxonomy starting with the EU Taxonomy Climate Delegated Act.
FDIC is seeking comments on a rule to amend the interagency guidelines for real estate lending policies—also known as the Real Estate Lending Standards.
EIOPA published its annual report, which sets out the work done in 2020 and indicates the planned work areas for the coming months.
The ESRB paper that presents an analytical framework that assesses and quantifies the potential impact of a bank failure on the real economy through the lending function.