[Federal Register Volume 79, Number 9 (Tuesday, January 14, 2014)]
[Proposed Rules]
[Pages 2394-2395]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-00496]


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COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 150

RIN 3038-AD82


Aggregation of Provisions

AGENCY: Commodity Futures Trading Commission.

ACTION: Proposed rule; extension of comment period.

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SUMMARY: On November 15, 2013, the Commodity Futures Trading Commission 
(``Commission'') published in the Federal Register a notice of proposed 
rulemaking (the ``Aggregation Proposal'') to amend existing regulations 
setting out the Commission's policy for aggregation under its position 
limits regime. On the same day that the Commission adopted the 
Aggregation Proposal, it also adopted a proposal to establish 
speculative position limits for the 28 exempt and agricultural 
commodity futures and options contracts and the physical commodity 
swaps that are economically equivalent to such contracts that 
previously had been covered by part 151 of its regulations (the 
``Position Limits Proposal''). However, the Position Limits Proposal 
was not published in the Federal Register until December 12, 2013. 
Because the comment period for both proposals was 60 days after 
publication in the Federal Register, the comment period for the 
Position Limits Proposal runs to a later date than the comment period 
for the Aggregation Proposal. In order to provide interested parties 
with an opportunity to comment on the Aggregation Proposal for so long 
as the comment period on the Position Limits Proposal is open, the 
Commission is extending the comment period for the Aggregation Proposal 
so that it ends at the same time as the comment period for the Position 
Limits Proposal.

DATES: The comment period for the Aggregation Proposal published 
November 15, 2013, at 78 FR 68946, is extended until February 10, 2014.

ADDRESSES: You may submit comments, identified by RIN 3038-AD82, by any 
of the following methods:
     Agency Web site: http://comments.cftc.gov;
     Mail: Melissa D. Jurgens, Secretary of the Commission, 
Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st 
Street NW., Washington, DC 20581;
     Hand Delivery/Courier: Same as mail, above; or
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow instructions for submitting comments.

Please submit your comments using only one method.
    All comments must be submitted in English, or if not, accompanied 
by an English translation. Comments will be posted as received to 
http://www.cftc.gov. You should submit only information that you wish 
to make available publicly. If you wish the Commission to consider 
information that may be exempt from disclosure under the Freedom of 
Information Act, a petition for confidential treatment of the exempt 
information may be submitted according to the procedures established in 
CFTC regulations at 17 CFR part 145.
    The Commission reserves the right, but shall have no obligation, to 
review, pre-screen, filter, redact, refuse or remove any or all of your 
submission from http://www.cftc.gov that it may deem to be 
inappropriate for publication, such as obscene language. All 
submissions that have been redacted

[[Page 2395]]

or removed that contain comments on the merits of the rulemaking will 
be retained in the public comment file and will be considered as 
required under the Administrative Procedure Act and other applicable 
laws, and may be accessible under the Freedom of Information Act.

FOR FURTHER INFORMATION CONTACT: Stephen Sherrod, Senior Economist, 
Division of Market Oversight, (202) 418-5452, [email protected]; Riva 
Spear Adriance, Senior Special Counsel, Division of Market Oversight, 
(202) 418-5494, [email protected]; or Mark Fajfar, Assistant General 
Counsel, Office of General Counsel, (202) 418-6636, [email protected]; 
Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st 
Street NW., Washington, DC 20581.

SUPPLEMENTARY INFORMATION: 

I. Background

    The Commission has long established and enforced speculative 
position limits for futures and options contracts on various 
agricultural commodities as authorized by the Commodity Exchange Act 
(``CEA'').\1\ The part 150 position limits regime,\2\ generally 
includes three components: (1) The level of the limits, which set a 
threshold that restricts the number of speculative positions that a 
person may hold in the spot-month, individual month, and all months 
combined,\3\ (2) exemptions for positions that constitute bona fide 
hedging transactions and certain other types of transactions,\4\ and 
(3) rules to determine which accounts and positions a person must 
aggregate for the purpose of determining compliance with the position 
limit levels.\5\ The Aggregation Proposal, generally speaking, sets out 
proposed changes to the Commission's regulations relating to the third 
component of the position limits regime.\6\
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    \1\ 7 U.S.C. 1 et seq.
    \2\ See 17 CFR part 150. Part 150 of the Commission's 
regulations establishes federal position limits on certain 
enumerated agricultural contracts; the listed commodities are 
referred to as enumerated agricultural commodities.
    \3\ See 17 CFR 150.2.
    \4\ See 17 CFR 150.3.
    \5\ See 17 CFR 150.4.
    \6\ See Aggregation of Positions, 78 FR 68946 (Nov. 15, 2013).
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    The Commission has also adopted the Position Limits Proposal, 
proposing to establish speculative position limits for 28 exempt and 
agricultural commodity futures and option contracts, and physical 
commodity swaps that are ``economically equivalent'' to such contracts 
(as such term is used in section 4a(a)(5) of the CEA).\7\
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    \7\ See Position Limits for Derivatives, 78 FR 75680 (Dec. 12, 
2013).
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    The Commission adopted the Aggregation Proposal and the Position 
Limits Proposal separately because it believes that the proposed 
amendments regarding aggregation of positions could be appropriate 
regardless of whether the Position Limits Proposal is adopted. The 
Commission anticipates that it could adopt either of the proposals 
separately from the other, but if both proposals are finalized, the 
modifications in the Aggregation Proposal would apply to both the 
current position limits regime for futures and option contracts on nine 
agricultural commodities and to the position limits regime for 28 
exempt and agricultural commodity futures and options contracts and the 
physical commodity swaps that are economically equivalent to such 
contracts that was proposed in the Position Limits Proposal.\8\
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    \8\ See Aggregation Proposal, 78 FR at 68947.
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II. Extension of Comment Period

    Subsequent to issuing the Aggregation Proposal, the Commission has 
received four written comments from interested parties requesting that 
the Commission extend the comment period so that it would end at the 
same time as the comment period for the Position Limits Proposal.\9\ In 
general, these commenters said that because of the related nature of 
the two proposals, it would be more practicable to formulate comments 
on both the proposals at the same time. The commenters pointed out, for 
example, that in certain instances the comments to be made on an aspect 
of one of the proposals may depend on views regarding the other 
proposal. The Commission also notes that these requests for an 
extension of time were made by several groups representing a wide 
variety of market participants who are interested in commenting on the 
Aggregation Proposal.\10\
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    \9\ See letter from the Asset Management Group of the Securities 
Industry and Financial Markets Association and the International 
Swaps and Derivatives Association dated December 20, 2013; letter 
from Sutherland Asbill & Brennan LLP on behalf of The Commercial 
Energy Working Group dated December 23, 2013; letter from the Edison 
Electric Institute, the Energy Power Supply Association and the 
American Gas Association dated January 3, 2014; and letter from the 
Futures Industry Association, Inc. (``FIA''), dated January 3, 2014. 
These letters, and other comments received on the Aggregation 
Proposal, are available at http://comments.cftc.gov/PublicComments/CommentList.aspx?id=1427.
    \10\ FIA noted that it ``supports the Commission's decision to 
propose, and if possible, finalize a well-crafted Aggregation 
Proposal as expeditiously as possible.'' FIA requested the 
Commission ``not delay adopting a final aggregation rule pending 
finalization of the 2013 Position Limits Proposal.'' See January 3, 
2014, letter at footnote 4.
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    In light of the comments received, the Commission is extending the 
comment period for the Aggregation Proposal to align with the comment 
period for the Position Limits Proposal. Thus, both comment periods 
will end on February 10, 2014.

    Issued in Washington, DC, on January 9, 2014, by the Commission.
Christopher J. Kirkpatrick,
Deputy Secretary of the Commission.

    Note: The following appendix will not appear in the Code of 
Federal Regulations.

Appendix to Extension of Comment Period for the Rulemaking Amending the 
Aggregation Provisions of Part 150--Commission Voting Summary

    On this matter, Acting Chairman Wetjen and Commissioners Chilton 
and O'Malia voted in the affirmative. No Commissioner voted in the 
negative.

[FR Doc. 2014-00496 Filed 1-13-14; 8:45 am]
BILLING CODE 6351-01-P