What are non reportable positions CFTC?

A Non-reportable position, in line with the CFTC’s definition, is that of any trader whose position is smaller than the reporting level in every contract month (350 for Brent, 250 for gasoil, 100 for soft commodities).

Can CFTC prosecute non registrants?

Non-Registrant Sanctions: CFTC Taking Actions for Failure to File Required Reports. Non-Registrants face many CFTC rules and regulations, and increasingly the obligation to file certain reporting forms, including Forms 204 and 304.

What are CFTC position limits?

Legacy agricultural commodities represent 9 of the most liquid contracts, and their liquidity tends to leave them vulnerable to manipulation and excessive speculation. So to prevent market manipulation, the CFTC set the maximum number of spot month positions at or below 25 percent of their deliverable supply.

Who are the non-commercial traders?

A non-commercial trader is someone who has no direct business interests in the commodity that they are trading. Instead, a non-commercial trader takes a speculative market position only to profit from price moves in the market.

Can the CFTC take Enforcement action against non registrants?

The CFTC takes enforcement actions against individuals and firms registered with the Commission, those who are engaged in commodity futures and option trading on designated domestic exchanges, and those who improperly market futures and options contracts.

Can CFTC prosecute criminal violations?

Criminal activity involving commodity-related instruments can result in prosecution for criminal violations of the CEA and for violations of other federal criminal statutes, including commodities fraud, mail fraud, wire fraud and conspiracy.

Do all futures contracts have limits?

There are two parts in the price limits for some futures contracts: an initial price limit and a variable price limit (some futures contracts do not have variable price limits). Initial price limits are fixed, restricting the transactions from settling above the upper limits or below the lower limits.

Are banks non-commercial traders?

Banks or corporations who are looking to protect themselves against sudden price changes in currencies or other assets are also considered commercial traders. A key characteristic of hedgers is that they are most bullish at market bottoms and most bearish at market tops.

What is commercial and non-commercial in trading?

Non-Commercial vs. Commercial traders are largely seen as defensive players in the market, rather than trendsetters. While non-commercial traders share a clear profit motive, the trading motives of commercial traders are much more diverse.

Can the NFA take Enforcement action?

Enforcement & Registration Actions NFA has the authority to take disciplinary actions against any Member or Associate that violates its rules. If an NFA Member or Associate engages in conduct that puts customers, the futures markets, or other Members at risk, immediate action will be taken accordingly.

What are non-commercial purposes?

“NonCommercial means not primarily intended for or directed towards commercial advantage or monetary compensation.” The definition is intent-based and intentionally flexible in recognition of the many possible factual situations and business models that may exist now or develop later.

Can a DCM voluntarily request CFTC approval of a new contract?

A DCM that voluntarily requests CFTC approval of a new contract may do so by submitting its request prior to, concurrently with, or subsequent to a new contract self-certification filing.

Can a court enforce an original contract with a minor?

A court may enforce an original contract, although another course of action could be requiring the minor to pay for the services or goods at fair market value. For example, a minor exits the highway during a major rainstorm and finds a hotel nearby.

What are the pitfalls of a contract with a minor?

Whether you are selling something or buying something from a minor, you need to be aware of the pitfalls of any agreement between you and this young person. Most contracts with minors aren’t upheld by a court. If you want to enter into a contract with someone and you want to be able to take the person to court if the contract is violated.

Do I need to register with the CFTC?

If you live in the United States, foreign entities that solicit you to trade are generally required to register with the CFTC; however, some non-U.S. firms are exempt from registration.