FR Doc E8-12728[Federal Register: June 6, 2008 (Volume 73, Number 110)]
[Proposed Rules]
[Page 32260-32261]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06jn08-21]
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COMMODITY FUTURES TRADING COMMISSION
17 CFR Part 150
RIN 3038-AC140
Revision of Federal Speculative Position Limits
AGENCY: Commodity Futures Trading Commission.
ACTION: Proposed rules; withdrawal.
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SUMMARY: On November 21, 2007, the Commodity Futures Trading Commission
(Commission or CFTC) published a proposed rulemaking to increase the
Federal speculative position limits for certain agricultural commodity
contracts set out in Commission regulation 150.2 (proposed
rulemaking).\1\ The proposed rulemaking would have increased the
single-month and all-months-combined position limits for all contracts
except contracts based on oats in accordance with the formula set out
in Commission regulation 150.5(c). The proposed rulemaking would have
also required the aggregation of traders' positions in contracts that
share substantially identical terms with regulation 150.2-enumerated
contracts, regardless of whether such contracts were specifically
delineated in that regulation, for the purposes of ascertaining
compliance with the Federal speculative position limits. For the
reasons provided below, the Commission has determined to withdraw the
proposed rulemaking.
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\1\ Revision of Federal Speculative Position Limits, 72 FR 65483
(November 21, 2007).
FOR FURTHER INFORMATION CONTACT: Donald Heitman, Senior Special
Counsel, Division of Market Oversight, Commodity Futures Trading
Commission, Three Lafayette Centre, 1155 21st Street, NW., Washington,
DC 20581, telephone (202) 418-5041, facsimile number (202) 418-5507, e-
mail [email protected]; or Martin Murray, Economist, Division of Market
Oversight, telephone (202) 418-5276,
[[Page 32261]]
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facsimile number (202) 418-5507, e-mail [email protected].
SUPPLEMENTARY INFORMATION: The Commission has long established and
enforced speculative position limits for futures contracts on various
agricultural commodities. The Commission periodically reviews these
Federal speculative position limits, which are set out in Commission
regulation 150.2.\2\ On November 21, 2007, the Commission published its
proposed rulemaking to increase Federal speculative position limits for
all single-month and all-months-combined positions in all commodity
markets enumerated in Commission regulation 150.2, except Chicago Board
of Trade (CBT) Oats, based on the formula set out in Commission
regulation 150.5(c). The rulemaking proposed to increase levels for
single-month and all-months-combined positions for CBT Corn, Soybeans,
Wheat, Soybean Oil, and Soybean Meal; Minneapolis Grain Exchange Hard
Red Spring Wheat; Kansas City Board of Trade Hard Winter Wheat; and New
York Board of Trade \3\ Cotton No. 2. In addition, the rulemaking
proposed to require the aggregation of positions in contracts that
share substantially identical terms with regulation 150.2-enumerated
contracts, regardless of whether such contracts were specifically
delineated in that regulation, for the purposes of ascertaining
traders' compliance with the Federal speculative position limits.
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\2\ Commission regulation 150.2 imposes three types of position
limits for each specified contract: a spot month limit, a single-
month limit, and an all-months-combined limit. The Commission most
recently adopted amendments to levels for Federal speculative
position limits in 2005. See 70 FR 24705 (May 11, 2005).
\3\ The New York Board of Trade was acquired by ICE Futures U.S.
in January, 2007.
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The Commission requested public comment by December 21, 2007. On
December 31, 2007, the Commission extended the initial comment period
to January 21, 2008 to give interested parties additional opportunity
to comment.\4\ The Commission received a total of 40 comment letters in
response to its Federal Register publication.\5\ Six letters generally
favored the proposed regulations and 34 letters were generally opposed
to their adoption. An Agricultural Forum held by the Commission on
April 22, 2008 served as an additional venue for the presentation of
views with respect to the proposed rulemaking and a related Commission
proposal to adopt a risk management exemption from the Federal
speculative position limits.\6\
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\4\ 72 FR 74213 (December 31, 2007).
\5\ Federal Register Comment File 07-014, available at http://
www.cftc.gov/lawandregulation/federalregister/
federalregistercomments/2007/07-014.html.
\6\ Risk Management Exemption from Federal Speculative Position
Limits, 72 FR 66097 (November 27, 2007) (to be withdrawn).
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Collectively, the comments received in response to the proposed
rulemaking and at the Commission's April 22 Agricultural Forum
reflected differing perspectives on a wide range of issues of
substantive import to the proposed rulemaking. The issues covered by
the commenters, both in favor and opposed to the Commission's proposal
to revise the Federal speculative position limits, included product
margin requirements, the convergence of cash and futures transaction
prices, the impact of commodity-linked instruments traded on national
securities exchanges on CFTC regulated transactions, the degree of
transparency for market participation, and the quantification of the
impact of speculative trading on market volatility. In light of the
wide range of divergent positions that have been put forth by
interested parties, the current market conditions for the contracts
that would be affected by the proposed rulemaking, and in order to
determine whether further consensus among the affected parties should
be sought, the Commission has determined to withdraw the proposed
rulemaking pending further consideration of the relevant issues.
Issued by the Commission this June 2, 2008, in Washington, DC.
David Stawick,
Secretary of the Commission.
[FR Doc. E8-12728 Filed 6-5-08; 8:45 am]
BILLING CODE 6351-01-P
Last Updated: June 6, 2008