[Federal Register Volume 79, Number 9 (Tuesday, January 14, 2014)]
[Proposed Rules]
[Pages 2394-2395]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-00496]
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COMMODITY FUTURES TRADING COMMISSION
17 CFR Part 150
RIN 3038-AD82
Aggregation of Provisions
AGENCY: Commodity Futures Trading Commission.
ACTION: Proposed rule; extension of comment period.
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SUMMARY: On November 15, 2013, the Commodity Futures Trading Commission
(``Commission'') published in the Federal Register a notice of proposed
rulemaking (the ``Aggregation Proposal'') to amend existing regulations
setting out the Commission's policy for aggregation under its position
limits regime. On the same day that the Commission adopted the
Aggregation Proposal, it also adopted a proposal to establish
speculative position limits for the 28 exempt and agricultural
commodity futures and options contracts and the physical commodity
swaps that are economically equivalent to such contracts that
previously had been covered by part 151 of its regulations (the
``Position Limits Proposal''). However, the Position Limits Proposal
was not published in the Federal Register until December 12, 2013.
Because the comment period for both proposals was 60 days after
publication in the Federal Register, the comment period for the
Position Limits Proposal runs to a later date than the comment period
for the Aggregation Proposal. In order to provide interested parties
with an opportunity to comment on the Aggregation Proposal for so long
as the comment period on the Position Limits Proposal is open, the
Commission is extending the comment period for the Aggregation Proposal
so that it ends at the same time as the comment period for the Position
Limits Proposal.
DATES: The comment period for the Aggregation Proposal published
November 15, 2013, at 78 FR 68946, is extended until February 10, 2014.
ADDRESSES: You may submit comments, identified by RIN 3038-AD82, by any
of the following methods:
Agency Web site: http://comments.cftc.gov;
Mail: Melissa D. Jurgens, Secretary of the Commission,
Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st
Street NW., Washington, DC 20581;
Hand Delivery/Courier: Same as mail, above; or
Federal eRulemaking Portal: http://www.regulations.gov.
Follow instructions for submitting comments.
Please submit your comments using only one method.
All comments must be submitted in English, or if not, accompanied
by an English translation. Comments will be posted as received to
http://www.cftc.gov. You should submit only information that you wish
to make available publicly. If you wish the Commission to consider
information that may be exempt from disclosure under the Freedom of
Information Act, a petition for confidential treatment of the exempt
information may be submitted according to the procedures established in
CFTC regulations at 17 CFR part 145.
The Commission reserves the right, but shall have no obligation, to
review, pre-screen, filter, redact, refuse or remove any or all of your
submission from http://www.cftc.gov that it may deem to be
inappropriate for publication, such as obscene language. All
submissions that have been redacted
[[Page 2395]]
or removed that contain comments on the merits of the rulemaking will
be retained in the public comment file and will be considered as
required under the Administrative Procedure Act and other applicable
laws, and may be accessible under the Freedom of Information Act.
FOR FURTHER INFORMATION CONTACT: Stephen Sherrod, Senior Economist,
Division of Market Oversight, (202) 418-5452, [email protected]; Riva
Spear Adriance, Senior Special Counsel, Division of Market Oversight,
(202) 418-5494, [email protected]; or Mark Fajfar, Assistant General
Counsel, Office of General Counsel, (202) 418-6636, [email protected];
Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st
Street NW., Washington, DC 20581.
SUPPLEMENTARY INFORMATION:
I. Background
The Commission has long established and enforced speculative
position limits for futures and options contracts on various
agricultural commodities as authorized by the Commodity Exchange Act
(``CEA'').\1\ The part 150 position limits regime,\2\ generally
includes three components: (1) The level of the limits, which set a
threshold that restricts the number of speculative positions that a
person may hold in the spot-month, individual month, and all months
combined,\3\ (2) exemptions for positions that constitute bona fide
hedging transactions and certain other types of transactions,\4\ and
(3) rules to determine which accounts and positions a person must
aggregate for the purpose of determining compliance with the position
limit levels.\5\ The Aggregation Proposal, generally speaking, sets out
proposed changes to the Commission's regulations relating to the third
component of the position limits regime.\6\
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\1\ 7 U.S.C. 1 et seq.
\2\ See 17 CFR part 150. Part 150 of the Commission's
regulations establishes federal position limits on certain
enumerated agricultural contracts; the listed commodities are
referred to as enumerated agricultural commodities.
\3\ See 17 CFR 150.2.
\4\ See 17 CFR 150.3.
\5\ See 17 CFR 150.4.
\6\ See Aggregation of Positions, 78 FR 68946 (Nov. 15, 2013).
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The Commission has also adopted the Position Limits Proposal,
proposing to establish speculative position limits for 28 exempt and
agricultural commodity futures and option contracts, and physical
commodity swaps that are ``economically equivalent'' to such contracts
(as such term is used in section 4a(a)(5) of the CEA).\7\
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\7\ See Position Limits for Derivatives, 78 FR 75680 (Dec. 12,
2013).
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The Commission adopted the Aggregation Proposal and the Position
Limits Proposal separately because it believes that the proposed
amendments regarding aggregation of positions could be appropriate
regardless of whether the Position Limits Proposal is adopted. The
Commission anticipates that it could adopt either of the proposals
separately from the other, but if both proposals are finalized, the
modifications in the Aggregation Proposal would apply to both the
current position limits regime for futures and option contracts on nine
agricultural commodities and to the position limits regime for 28
exempt and agricultural commodity futures and options contracts and the
physical commodity swaps that are economically equivalent to such
contracts that was proposed in the Position Limits Proposal.\8\
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\8\ See Aggregation Proposal, 78 FR at 68947.
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II. Extension of Comment Period
Subsequent to issuing the Aggregation Proposal, the Commission has
received four written comments from interested parties requesting that
the Commission extend the comment period so that it would end at the
same time as the comment period for the Position Limits Proposal.\9\ In
general, these commenters said that because of the related nature of
the two proposals, it would be more practicable to formulate comments
on both the proposals at the same time. The commenters pointed out, for
example, that in certain instances the comments to be made on an aspect
of one of the proposals may depend on views regarding the other
proposal. The Commission also notes that these requests for an
extension of time were made by several groups representing a wide
variety of market participants who are interested in commenting on the
Aggregation Proposal.\10\
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\9\ See letter from the Asset Management Group of the Securities
Industry and Financial Markets Association and the International
Swaps and Derivatives Association dated December 20, 2013; letter
from Sutherland Asbill & Brennan LLP on behalf of The Commercial
Energy Working Group dated December 23, 2013; letter from the Edison
Electric Institute, the Energy Power Supply Association and the
American Gas Association dated January 3, 2014; and letter from the
Futures Industry Association, Inc. (``FIA''), dated January 3, 2014.
These letters, and other comments received on the Aggregation
Proposal, are available at http://comments.cftc.gov/PublicComments/CommentList.aspx?id=1427.
\10\ FIA noted that it ``supports the Commission's decision to
propose, and if possible, finalize a well-crafted Aggregation
Proposal as expeditiously as possible.'' FIA requested the
Commission ``not delay adopting a final aggregation rule pending
finalization of the 2013 Position Limits Proposal.'' See January 3,
2014, letter at footnote 4.
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In light of the comments received, the Commission is extending the
comment period for the Aggregation Proposal to align with the comment
period for the Position Limits Proposal. Thus, both comment periods
will end on February 10, 2014.
Issued in Washington, DC, on January 9, 2014, by the Commission.
Christopher J. Kirkpatrick,
Deputy Secretary of the Commission.
Note: The following appendix will not appear in the Code of
Federal Regulations.
Appendix to Extension of Comment Period for the Rulemaking Amending the
Aggregation Provisions of Part 150--Commission Voting Summary
On this matter, Acting Chairman Wetjen and Commissioners Chilton
and O'Malia voted in the affirmative. No Commissioner voted in the
negative.
[FR Doc. 2014-00496 Filed 1-13-14; 8:45 am]
BILLING CODE 6351-01-P