CFTC Large Trader Position Reporting

On Jun. 7, CFTC proposed to revise large trader position reporting.

  • CFTC proposed to amend 17 CFR 17 on large trader position reporting requirements.
  • Regulations set large trader position reporting requirements for futures and options.
  • Aims to modernize position reporting and align it with other CFTC reporting structures.
  • Commissioners Romero and Johnson issued statements in support of amendments.
  • Background
  • Reporting rules require FCMs, foreign brokers, clearing members, and certain reporting markets to report daily position information of the largest futures and options traders.
  • Commission uses reports to carry out its market surveillance programs, which include detection and prevention of price manipulation, and enforcement of speculative limits.
  • Enables the commission to identify large positions in single markets or across markets.
  • Source of data for fulfillment of market analysis program; supports research programs.
  • Reporting Requirements
  • Removed the 80-character record format and delegated authority to the Director of the Office of Data and Technology to designate a modern data submission standard.
  • Replaced data fields provided in 17 CFR 17 with an appendix specifying applicable data elements and a separate Part 17 Guidebook specifying form and manner for reporting.
  • Appendix C provided revised definitions and added to the required data elements.
  • Office of Data and Technology Director is authorized to specify form manner, coding structure, and electronic data transmission procedures for reporting these elements.
  • Johnson Remarks
  • Johnson noted the proposal captures complementary data not fully reflected today.
  • Required enhanced reporting to capture information on non-future leg of transactions.
  • Harmonization will unlock surveillance synergies and allow the integrated surveillance system to interact with reporting frameworks, including ownership and control reports.
  • Additional data provides commission the ability to differentiate between large position holders and better understand transparency and liquidity impacts of block thresholds.
  • Understands that proposed amendments may impose unanticipated material burdens.
  • Supports the one-year compliance period and encouraged stakeholder engagement.
  • Romero Remarks
  • Noted commission will benefit from strengthening and modernizing surveillance tool.
  • Commissioner Romero appreciated the recognition of the need to determine positions across markets for more comprehensive data and for data quality improvements.
  • Proposal enhances CFTC's ability to identify disruptive or manipulative trading activity.
  • Consultation
  • Comments must be submitted in 60 days of pending publication in the federal register.
  • Jun. 27, 2023 CFTC Fed Reg
  • On Jun. 27, 2023, CFTC issued proposal in fed register, comments by Aug. 28, 2023.
  • Aug. 28, 2023 FIA Comment
  • On Aug. 28, 2023, FIA issued a statement in support of efforts to modernize process.
  • Noted there remain outstanding issues that should be addressed to accomplish goal.
  • Smaller firms and foreign brokers, need additional clarity, in writing, on the types of data to report for certain data elements; provided specific requests for clarification.
  • Additionally, the CFTC should obtain static data from one centralized source (i.e., the relevant exchange) rather than requiring each reporting firm to submit the same data.
  • Identified elements that constitute static data and should be obtained from exchanges.
  • Aug. 28, 2023 OpCC Comment
  • On Aug. 28, 2023, OpCC commented on CFTC large trader reporting requirements.
  • Participated in FIA working group and noted OpCC support for FIA statement content.
  • Re the proposal, noted OpCC collects related reporting information on over 130 entities and submits information to CFTC on behalf of a Designated contract market (DCM).
  • Recommended CFTC address significant technical ambiguities and costs and burdens.
  • Stressed that new LTR requirements will necessitate system updates to reflect the new data format and content standards for OpCC staff to aggregate/submit data to CFTC.
  • Cited key change from one-time error correction submissions to a continuous process.
  • Requested at least 2-year transition period to conduct technology and testing work.
  • Apr. 2024 CFTC Final Rules
  • On Apr. 30, 2024, CFTC approved final rules to amend its large trading reporting regulations for futures and options; in addition, issued Guidebook for part 17.00.
  • Required firms to report position information for largest futures and options traders.
  • Replaced data elements currently enumerated with appendix specifying applicable data
  • Provided for publication of guidebook specifying the form and manner for reporting.
  • Removed outdated 80-character data submission standard in the CFTC’s regulations.
  • Standard will be replaced by a FIXML standard, as set out in the Part 17 guidebook.
  • CFTC Commissioners Johnson, Mersinger supported; Commissioner Pham dissented.
  • The final rules are effective 60 days after publication in the federal register; reporting firms must comply with the final rules 2 years after publication in the federal register.
  • Jun. 2024 CFTC Fed Reg Final Rule
  • On Jun. 3, 2024, CFTC published final rule in federal register, effective Aug. 2, 2024.

Regulators CFTC; FIA; OpCC
Entity Types B/D; Exch; FCM
Reference OpCC: Lt, PR, 8/28/2023; FIA: Lt, PR, 8/28/2023; CFTC: 89 FR 47439, 6/3/2024; Sp, PR 8902-24, RF, 4/30/2024; Gd Version 1.9, 4/16/2024; 88 FR 41522, 6/27/2023; Sp, RF, PR 8714-23, 6/7/2023; RIN 3038-AC22, 3038-AF27; Citation: 17 CFR 17;
Functions Compliance; Financial; Operations; Reporting; Risk; Technology; Trade Reporting; Trading
Countries United States of America
Products Clearing; Commodities; Derivatives; Futures
Regions Am
Rule Type Final
Rule Date 6/7/2023
Effective Date 8/2/2024
Rule Id 175412
Linked to N/A
Reg. Last Update 6/3/2024
Report Section US Investment

Last substantive update on 06/05/2024