CFTC issues hedge transaction advisory

CFTC issues hedge transaction advisory

The CFTC’s Division of Market Oversight issued an advisory on the treatment of hedging transactions and positions under Commission Regulations, as they existed before the adoption of the final rule on Position Limits for Futures and Swaps. The advisory was issued to remind participants that regulations will continue to apply to position limits until 60 days after the Commission and the SEC publish joint rules further defining the term “swap.” After the Commissions define “swap,” the new rules on hedging positions will apply to exempt and agricultural commodities and regulation.

No new exemptions will be granted, said the Advisory. Any relief granted under the new regulation for swap risk management will not apply to any new swap positions entered 60 days after the definition of “swap.”

Read more about the advisory.

Photo credit: Waponi

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About The Author


Elan Mendel

Elan Mendel

Elan Mendel is an associate with Shipkevich PLLC, and has done registration, compliance, and enforcement defense work for commodities, futures and forex firms registered with the CFTC and NFA as FCMs, RFEDs, and others. Elan also specializes in domestic and cross-border insolvency issues.

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