Position Limits

Ensure that any CFTC position limits rule is practical, narrowly-tailored, and not unduly burdensome

MFA opposes burdensome regulations that unnecessarily impede market participants from engaging in hedging and risk management activities. MFA seeks to work constructively with the CFTC to develop a practical and effective position limits framework that will continue to allow market participants to use the derivatives markets for risk management purposes without undue burden.

The Dodd-Frank Act authorized the CFTC to set position limits, as necessary, on commodity derivatives and economically equivalent contracts. The CFTC finalized regulation on the aggregation of position limits in 2017 and continues to work on rulemaking on position limits.