Division of 

Market Oversight 

U.S. COMMODITY FUTURES TRADING COMMISSION

Three Lafayette Centre

1155 21st Street, NW, Washington, DC 20581

Telephone: (202) 418-5000

Facsimile: (202) 418-5521

CFTC Letter No. 17-06

No-Action 

February 6, 2017 

Division of Market Oversight 

Timothy W. Cameron, Esq. 

Asset Management Group – Head 

Securities Industry and Financial Markets Association 

Laura Martin, Esq. 

Asset Management Group –

Managing Director and Associate General Counsel 

Securities Industry and Financial Markets Association 

Steven Kennedy 

Global Head of Public Policy 

International Swaps and Derivatives Association 

Dear Mr. Cameron, Ms. Martin, and Mr. Kennedy: 

On December 16, 2016, the Commodity Futures Trading Commission (the 

“Commission”) published in the Federal Register a rulemaking entitled Aggregation of 

Positions, which amended Commission Regulation 150.4.1 The amendments to § 150.4

determine which accounts and positions a person must aggregate for the purpose of 

determining compliance with the applicable position limit levels set forth in § 150.2. The 

amendments to Commission Regulation 150.4 become effective on February 14, 2017. 

Under amended Commission Regulation 150.4, market participants relying on 

exemptive relief under paragraphs (b)(1)(ii), (b)(2), (b)(3), (b)(4) or (b)(7) are required to 

file notice with the Commission demonstrating compliance with the conditions applicable 

to the claimed exemption.2 The notice must generally be made before the exemption

1

 Aggregation of Positions, 81 FR 91454 (December 16, 2016) (“Final Rule”). 

2

Id. at 91491. 
No-Action Position re: Regulation 150.4(c) Notice Filing Requirements 

February 6, 2017 

Page 2 

from aggregation is needed, since the filing would generally be a pre-requisite for 

obtaining the exemption.

Requests for No-Action Relief 

SIFMA AMG Request for Relief 

On January 23, 2017, the Commission’s Division of Market Oversight ( “DMO”)

received a request from the Asset Management Group of the Securities Industry and 

Financial Markets Association (“SIFMA AMG”) for time-limited no-action relief, until 

May 15, 2017, in regards to compliance with amended § 150.4 (“SIFMA AMG NoAction Request”). Specifically, the SIFMA AMG No-Action Request sought relief for 

market participants that are eligible to rely on an exemption from aggregation from the 

requirement to comply with the notice filing and certification requirements included in 

Commission Regulation 150.4(c).3

According to the SIFMA AMG No-Action Request, it is not practicable, 

notwithstanding good-faith efforts, to comply with the new notice filing and certification 

requirements of the Final Rule by the effective date. As described, market participants 

must analyze and adapt to the amended aggregation requirements, and determine where 

any new aggregation exemption is available, among other things.4 The SIFMA AMG

No-Action Request provides examples of these steps, such as determining which owned 

entities are eligible for disaggregation under the owned entity exemption.

3

 Specifically, the SIFMA AMG No-Action Request asked for time-limited no-action relief that “would 

provide that: (1) the Division of Market Oversight (the “Division”) of the U.S. Commodity Futures Trading 

Commission (the “Commission”) would not recommend an enforcement action against any person or entity 

that is eligible to rely on an exemption from aggregation for failing to comply with the new notice filing 

requirements of Commission Regulation 150.4(c) for 90 days following its effective date (i.e., prior to May 

15, 2017), and (2) the failure to file such a notice during the period of relief would not cause such person or 

entity to violate the Commission’s aggregation requirements or any position limit.” SIFMA AMG NoAction Request at 1; see also SIFMA AMG No-Action Request at 2. 

4

“For example, all market participants potentially at risk of approaching position limits must 

simultaneously: (1) analyze what impact the regulatory changes have on their business structures and 

trading programs, (2) determine which accounts and positions are eligible for any new aggregation 

exemption, (3) prepare the new notice filing (including an explanation of the circumstances warranting 

disaggregation) in connection with most of the exemptions from aggregation requirements and (4) work 

with their senior officers who will be required to certify certain information contained in the notice filing.” 

SIFMA AMG No-Action Request at 2. 
No-Action Position re: Regulation 150.4(c) Notice Filing Requirements 

February 6, 2017 

Page 3 

The SIFMA AMG No-Action Request states that these steps are particularly 

problematic for asset managers because they must mobilize their own institutions to 

satisfy these requirements and assess the need for outreach plans to ensure that their 

clients are aware of and prepared for the coming changes. Finally, the notice filings and 

certifications will take significant time to prepare in and of themselves, for a number of 

reasons.5

SIFMA AMG further states that it does not believe there is sufficient time before 

February 14, 2017 for market participants to accomplish all of the above described tasks 

in order to satisfy the requirements of the Final Rule.6 In addition, according to the

SIFMA AMG No-Action Request, each of the tasks is a considerable undertaking for 

compliance personnel of asset managers and large corporate entities that already have a 

full plate of regulatory compliance responsibilities, and will require systems to address 

both current circumstances and business operations going forward. SIFMA AMG states 

its belief that, as a result, market participants will not have adequate time to also prepare 

the new notice filings and certifications required by Commission Regulation 150.4(c), 

and that the requested no-action relief would afford market participants necessary time to 

fulfill their own responsibilities in order to rely on an aggregation exemption under the 

Final Rule, and to conduct any necessary outreach efforts to their clients.7

ISDA Request for Relief 

On January 27, 2017, DMO received a letter from the International Swaps and 

Derivatives Association (“ISDA”), which requested time-limited no-action relief in 

regards to compliance with amended § 150.4 for substantially similar reasons as the 

SIFMA AMG No-Action Request, but for a period of at least six months (the “ISDA NoAction Request”).

5

 The SIFMA AMG No-Action Request states “[f]irst, explanations of the circumstances that warrant 

disaggregation will have to be prepared. Second, compliance personnel will have to work with senior 

officers who are required to make the certifications to assure they are able to appropriately certify that the 

criteria for the relevant exemption (some of which are extremely complex) have been satisfied. And third, 

asset managers in particular must assess whether to engage in outreach to their clients to ensure that such 

clients are aware of the aggregation (and disaggregation) requirements of the Final Rule, especially where 

those clients may be required, or choose, to prepare and submit their own notice filings and certifications.” 

SIFMA AMG No-Action Request at 3. 

6

Id.

7

Id.
No-Action Position re: Regulation 150.4(c) Notice Filing Requirements 

February 6, 2017 

Page 4 

Time-Limited No-Action Relief 

DMO has reviewed each specific request and determined to grant relief subject to 

the conditions set forth below. 

After consideration of both relief requests, DMO is issuing this time-limited noaction relief. Accordingly, when the Final Rule is required, DMO will not recommend 

that the Commission commence an enforcement action against any person or entity that is 

eligible to rely on an exemption from aggregation under Commission Regulation 

150.4(b) that fails to comply with the notice filing requirements of Commission 

Regulation 150.4(c) until August 14, 2017. Upon the expiration of this relief, each 

person or entity that intends to rely on an exemption from aggregation under § 150.4(b) 

must file a notice as required under § 150.4(c). 

DMO notes that although it is providing temporary relief from the aggregation 

notice filing compliance date under Commission Regulation 150.4(c), participants may 

chose, of their own accord, to file a notice with the Commission that complies with the 

requirements of § 150.4(c) of their intent to take advantage of an exemption from 

aggregation provided under § 150.4(b). 

Conclusion 

This no-action relief shall remain in effect until 12:01 a.m. eastern standard time 

on August 14, 2017. 

The relief provided by this letter is limited to the notice filing requirements of 

Commission Regulation 150.4(c) and does not excuse persons relying on it from 

compliance with any other applicable requirements contained in the Commodity 

Exchange Act (“CEA”) or in the Commission regulations issued thereunder. The relief 

also does not address issues related to aggregation for other purposes under the CEA and 

regulations, including manipulation or other abusive practices. 

This letter and the position taken herein represent the views of DMO only, and do 

not necessarily represent the views of the Commission or of any other office or division 

of the Commission. Further, this letter, and the relief contained herein, is based upon the 

representations made to DMO by both SIFMA AMG, in the SIFMA AMG No-Action 

Request, and ISDA, in the ISDA No-Action Request. Any different, changed, or omitted 

material facts or circumstances might render this letter void. Finally, as with all noaction letters, DMO retains the authority to condition further, modify, suspend, terminate, 

or otherwise restrict the terms of the relief provided herein in its discretion. 
No-Action Position re: Regulation 150.4(c) Notice Filing Requirements

February 6, 2017 

Page 5 

If you have any questions regarding this staff no-action letter, please contact 

Stephen Sherrod at ssherrod@cftc.gov, (202) 418-5452; or Riva Spear Adriance at 

radriance@cftc.gov, 202-418-5494. 

Sincerely, 

_____________________ 

Amir Zaidi 

Director 

Division of Market Oversight