• Temporary Waiver of Annual Application Update for Position Limit Exemptions

      • To
      • Members, Member Firms and Market Users
      • From
      • Market Regulation Department
      • #
      • CME Group RA1107-5
      • Notice Date
      • 20 December 2011
      • Effective Date
      • 20 December 2011
    • Effective immediately, CME, CBOT, NYMEX and COMEX (collectively, “the Exchanges”) are granting a temporary waiver of the requirement under each Exchange’s Rule 559 (“Position Limit and Exemptions”) that market participants file an updated application on an annual basis to exceed speculative position limits. 
      On November 18, 2011, the Commodity Futures Trading Commission (“CFTC”) final rules governing position limits and exemptions were published in the Federal Register. These rules, which become effective 60 days after the CFTC further defines the term “swap,” outline specific requirements for obtaining an exemption from federal position limits.  As a result of the final CFTC rules, various types of exemptions authorized by Rule 559 will no longer be applicable, while additional types of exemptions will be added. Further information on the revisions to the types of exemptions from speculative position limits that will be permitted pursuant to Rule 559 will be the subject of a future Market Regulation Advisory Notice. 
      In light of the fact that the new CFTC rules will likely be effective in the near future and will require new applications to be filed with the Exchanges, we are temporarily waiving the annual updated application filing requirements through May 31, 2012. This temporary waiver is intended to reduce the administrative burden on both market participants operating under an exemption and the Exchanges.  Should it appear that the final rules will not be in effect prior to May 31, the Exchanges will review whether an extension is warranted and will advise the marketplace accordingly. 
      Notwithstanding this temporary waiver, all market participants currently operating under the terms of an Exchange-granted exemption from speculative position limits remain bound by and must comply with all relevant terms and conditions of such exemptions and Exchange rules. 
      Questions regarding this advisory may be directed to the following individuals in Market Regulation:
      William Kokontis, Director, Market Surveillance, 312.435.3665
      Chris Reinhardt, Associate Director, Market Surveillance, 212.299.2882
      Joe Hawrysz, Director, Market Surveillance, 312.341.7750
      For media inquiries concerning this Advisory Notice, please contact CME Group Corporate Communications at 312.930.3434 or news@cmegroup.com.