The Commodity Futures Trading Commission (CFTC) proposednew position limits for commodity derivatives last week, butthat proposal isn't expected to have much impact on mostcorporations that use derivatives to hedge risks. Meanwhile,companies are still waiting to learn whether U.S. bankingregulators will require derivative end users to post margin.

The CFTC's proposal to limit the number of contracts a singlefirm can hold in 28 different commodities follows a court'srejection of a previous position-limit proposal from thecommission.

Luke Zubrod, a director at Chatham Financial, downplayed theimportance of the CFTC's proposal for corporate end users, notingthat the limits involve agricultural, metals and energy contracts.“The big areas of interest rates and foreign currencies areuntouched by the position limits rules,” Zubrod said.

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Susan Kelly

Susan Kelly is a business journalist who has written for Treasury & Risk, FierceCFO, Global Finance, Financial Week, Bridge News and The Bond Buyer.