The CFTC has approved a final rule, regarding position limits for derivatives, completing the Commission’s major rulemakings related to implementation of the Dodd-Frank Act of 2010. The press release can be found here. These CFTC mandated limits have been in the legislative process for several years. The limits comprise several “critical” contracts on which the CFTC place direct limits, complementing the exchange position limits regime. As noted in this article on the FIA website, there have been many amendments to the original proposal. The end rule gives the exchanges a greater role in the management of the limits. The final rule with respect to the exchange administration of hedge exemptions has been amended following objections from some commissioners. In Europe, the MIFID II position limits rules have been far more extensive. The recent “quick fix” package proposes to reduce the number of mandatory limits to “critical” contracts and those related to agricultural commodities (see here).
Source: CTRM Center