CFTC Proposes Aggregation Exemptions: Proposal would expand exemptions from aggregation under the new position limit rules, including for non-majority investments

Sullivan & Cromwell LLP - May 21, 2012

The Commodity Futures Trading Commission (CFTC) has proposed rules that would expand and add exemptions from aggregation under the CFTC’s new position limit rules. The proposal includes a limited exemption from aggregation applicable to non-majority investments, which is subject to certain conditions being met by, on the one hand, the investor and any other entity with which it must aggregate positions, and on the other hand, the owned entity. Comments on the proposal are due 30 days after its publication in the Federal Register.