CFTC Staff Provides Temporary Relief Concerning Aggregation Notice Filings for Position Limits

In a letter to the SIFMA Asset Management Group and ISDA, the CFTC Division of Market Oversight (“DMO”) granted time-limited no-action relief to certain market participants, who are eligible for an exemption from aggregation, from having to comply with notice filing and certification requirements that are scheduled to become effective on February 14, 2017. In granting this relief, the DMO stated that it will not recommend enforcement against market participants for failure to file a notice when relying on certain aggregation exemptions from position limits.

The DMO acknowledged the claim of market participants that they “will not have adequate time to also prepare the new notice filings and certifications required by Commission Regulation 150.4(c),” and noted that such preparation is “particularly problematic” for asset managers who “already have a full plate of regulatory compliance responsibilities.”

The CFTC also announced the creation of a new portal that will provide the “form and manner” for filing aggregation exemption notices. The portal will be available to participants who choose to file a notice with the CFTC of their intent to take advantage of certain aggregation exemptions starting on February 11, 2017.

Lofchie Comment: The substance of the relief is notable, but so is CFTC staff’s consideration of the “full plate” of new compliance burdens to which firms are subject. Clearly, a new administration is at work at the CFTC.

Comments are closed.