External Meetings: Conference Call re: Position Limits for Derivatives

i.  The federal spot-month limits for derivatives on the 25 physical commodities subject to the most critical elements of the proposal would generally represent significant increases in permissible speculation; ii.  The proposal would not establish federal position limits for non-spot-month derivatives contracts on 16 of the 24 physical commodities subject to the most critical elements of the proposal; iii.  The proposal would dramatically expand (almost triple) the number of self-effectuating enumerated exemptions and for the first time recognize a broad exemption (read, loophole) for anticipatory merchandising; iv.  The proposal would implement a new process for recognizing non-enumerated hedging strategies that practically eliminates CFTC oversight; v.  The proposal would raise unnecessary administrative hurdles and open avenues for legal challenges to meaningful position limits by interpreting ambiguities in the Commodity Exchange Act (CEA) to require a “necessity” finding before the CFTC could finalize federal position limits.