Regulatory Alerts2019-09-27 | 2019-20476Position Limits and Position Accountability for Security Futures Products
The Commodity Futures Trading Commission issued a final rule amending position limit regulations for security futures products to increase the default maximum equity position limit for designated contract markets from 13,500 to 25,000 contracts. The rule modifies the criteria for establishing higher limits and position accountability thresholds by shifting the primary basis to estimated deliverable supply rather than average daily trading volume, while granting markets discretion to apply limits on either a net or gross basis. Additionally, the regulation extends position limit requirements and guidance to security futures based on non-equity instruments such as debt securities and exchange-traded funds, ensuring regulatory comparability with equity options and mitigating manipulation risks.