CFTC Finalization of Position Limits for DerivativesFri, 16 Oct 2020 09:05:45 CDT
The American Cotton Shippers Association (ACSA) applauds the Commodity Futures Trading Commission (CFTC) for its landmark finalization of rulemaking on Position Limits for Derivatives.
“The strong leadership of CFTC Chairman Heath Tarbert brought this process to fruition after more than ten years of gridlock,” ACSA President/CEO Buddy Allen said. “Chairman Tarbert has been directly engaged and committed to solidifying the risk management needs of the US cotton industry throughout his tenure at the CFTC. This rule’s finalization increases certainty for true commercial hedging, which makes risk management throughout the supply chain more efficient. This allows for better pricing to producers and end customers.”
Allen went on to commend the Intercontinental Exchange (ICE) for their partnership and cooperation throughout this process. “Without ICE standing with the industry, we would have likely not been successful in achieving the outcomes our industry needed in this rulemaking process.”
ACSA Chairman William Barksdale of Cargill Cotton commented saying, “We appreciate the Commission’s diligence in completing this long pending process with the commercial interests of the cotton industry being properly addressed. The close work and development of this rule to align with the industry’s needs during its development required real leadership from Chairman Tarbert, CFTC Commissioners, staff, and industry leadership.”
ACSA encourages the swift implementation of this rule to more broadly enumerate a list of bona fide hedges that represent the manner in which cotton is merchandised.
WebReadyTM Powered by WireReady® NSI
Top Agricultural News