The United States Commodity Futures Trading Commission (CFTC) told two “commodity pool operators” that they may no longer exceed federal agricultural speculative position limits established by 17 C.F.R. § 150.2. That, according to the Delta Farm Press and a CFTC news release from August 19, 2009.
In 2006 the CFTC’s Division of Market Oversight (DMO) granted DB Commodity Services LLC, a commodity pool operator and commodity trading advisor, and another commodity pool operator permission, or “no-action relief,” that allowed the pool operators to exceed the federal limits set by CFTC regulations regarding speculative positions for farm futures. The Division of Market Oversight feels the trading strategies being employed by the companies would not qualify them for a “bona fide” hedge exemption under current regulations. CFTC Chairman Gary Gensler stated, ‘“Position limits promote market integrity by guarding against concentrated positions.”’
According to the Delta Farm Press story, “The CFTC also stated that DMO ‘will work with each of these entities as they transition to positions within current federal speculative limits. The withdrawal of these no-action positions is very specific and limited and does not affect any other no-action or regulatory positions taken by the CFTC or its staff with regard to these entities or other market participants.”’
To read the Delta Farm Press story click here.
To read the CFTC news release click here.
In 2006 the CFTC’s Division of Market Oversight (DMO) granted DB Commodity Services LLC, a commodity pool operator and commodity trading advisor, and another commodity pool operator permission, or “no-action relief,” that allowed the pool operators to exceed the federal limits set by CFTC regulations regarding speculative positions for farm futures. The Division of Market Oversight feels the trading strategies being employed by the companies would not qualify them for a “bona fide” hedge exemption under current regulations. CFTC Chairman Gary Gensler stated, ‘“Position limits promote market integrity by guarding against concentrated positions.”’
According to the Delta Farm Press story, “The CFTC also stated that DMO ‘will work with each of these entities as they transition to positions within current federal speculative limits. The withdrawal of these no-action positions is very specific and limited and does not affect any other no-action or regulatory positions taken by the CFTC or its staff with regard to these entities or other market participants.”’
To read the Delta Farm Press story click here.
To read the CFTC news release click here.
Posted: 08/21/09
