[Federal Register Volume 73, Number 110 (Friday, June 6, 2008)]
[Proposed Rules]
[Pages 32260-32261]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-12728]


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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