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Compliance with the owned entity and independent account controller exemptions under CFTC Rule 150.4
Journal of Financial Compliance,
1
(4),
364-372
(2018)
Abstract
On 14th August, 2017, the Division of Market Oversight (DMO) at the Commodity Futures Trading Commission (the CFTC or Commission) issued time-limited no-action relief in the form of No-Action Letter (NAL) 17-37 (10th August, 2010) to delay until at least 12th August, 2019 compliance with the newly created obligation that a notice of exemption be filed with the CFTC prior to a market participant’s reliance on certain exemptions from the aggregation obligations for the purposes of speculative position limits under CFTC Rule 150.4. This paper discusses manners in which participants in light of NAL 17-37 may comply with CFTC Rule 150.4 and clarifies the distinction between the exemption for owned entities (Owned Entity Exemption) and the one for independent account controllers (IAC Exemption).
Keywords: CFTC Rule 150.4; position limits; aggregation; exemption; independent account controller; owned entity
The full article is available to subscribers to the journal.
Author's Biography
Carolyn Jackson is a partner in the London financial services practice. She has extensive experience in advising on financial markets and products regulation, including the regulation of over-the-counter (OTC) and exchange-traded derivatives, as well as securities and structured transactions. She advises on national and cross-border compliance with G20 regulatory reforms, including Dodd-Frank, EMIR, MiFID II and MiFIR. Prior to becoming a lawyer, Carolyn was the executive director of the International Swaps and Derivatives Association, Inc. and spent the first 13 years of her career as a derivatives trader at various New York banks.
