May 2, 2018

CFTC Staff Issues Interpretive Guidance Regarding Exemption from Aggregation

Washington, DC — The Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight today issued interpretive guidance regarding CFTC Regulation 150.4(b)(1), which is an exemption from position aggregation requirements for certain commodity pool investors.

In response to a request for interpretation, the staff letter confirms that, for purposes of applying the position limits set forth in CFTC Regulation 150.2, when an institutional investor qualifies for the Regulation 150.4(b)(1) exemption from position aggregation with respect to their investment in a fund, the institutional investor is not required to look through its investment in a fund to aggregate commodity interest positions of an underlying portfolio company in which the institutional investor may hold a 10 percent or greater indirect interest (via its investment in the fund).