The CFTC's Position Limits on Derivatives Proposal: Six Things To Know

The CFTC's Position Limits on Derivatives Proposal: Six Things To Know

February 3, 2020, Covington Alert

At an open meeting on January 30, 2020, the Commodity Futures Trading Commission (“CFTC”) voted 3–2 to approve a proposed rule that would impose federal position limits on derivatives. The proposed rule, if finalized, would prevent excessive speculation while allowing bona fide hedgers in agricultural, energy, metals, and other commodities markets to hedge risk in certain, enumerated circumstances.