CFTC Form 40 Reporting Levels
Managers who trade in the futures and commodities markets should be aware of the amount of contracts they are trading. For certain products, once a manager reaches a reporting level, the CFTC may request that the manager complete and submit a Form 40 to the CFTC. CFTC Regulation 15.03, reprinted in full below, provides the number of contracts for each commodity which is deemed to be a reporting level for CFTC Form 40.
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TITLE 17–COMMODITY AND SECURITIES EXCHANGES
CHAPTER I–COMMODITY FUTURES TRADING COMMISSION
PART 15 REPORTS GENERAL PROVISIONS–Table of Contents
Sec. 15.03 Reporting levels.
(a) Definitions. For purposes of this section:
Broad-based security index is a group or index of securities that does not constitute a narrow-based security index.
HedgeStreet products are contracts offered by HedgeStreet, Inc., a designated contract market, that pay up to $10.00 if in the money upon expiration.
Major foreign currency is the currency, and the cross-rates between the currencies, of Japan, the United Kingdom, Canada, Australia, Switzerland, Sweden and the European Monetary Union.
Narrow-based security index has the same meaning as in section 1a(25) of the Commodity Exchange Act.
Security futures product has the same meaning as in section 1a(32) of the Commodity Exchange Act.
(b) The quantities for the purpose of reports filed under parts 17 and 18 of this chapter are as follows:
Commodity (Number of contracts)
Agricultural:
Cocoa (100)
Coffee (50)
Corn (250)
Cotton (100)
Feeder Cattle (50)
Frozen Concentrated Orange Juice (50)
Lean Hogs (100)
Live Cattle (100)
Milk, Class III (50)
Oats (60)
Rough Rice (50)
Soybeans (150)
Soybean Meal (200)
Soybean Oil (200)
Sugar No. 11 (500)
Sugar No. 14 (100)
Wheat (150)
Broad-Based Security Indexes:
Municipal Bond Index (300)
S&P 500 Stock Price Index (1,000)
Other Broad-Based Securities Indexes (200)
Financial:
30-Day Fed Funds (600)
3-Month (13-Week) U.S. Treasury Bills (150)
2-Year U.S. Treasury Notes (1,000)
3-Year U.S. Treasury Notes (750)
5-Year U.S. Treasury Notes (2,000)
10-Year U.S. Treasury Notes (2,000)
30-Year U.S. Treasury Bonds (1,500)
1-Month LIBOR Rates (600)
3-Month Eurodollar Time Deposit Rates (3,000)
3-Month Euroyen (100)
2-Year German Federal Government Debt (500)
5-Year German Federal Government Debt (800)
10-Year German Federal Government Debt (1,000)
Goldman Sachs Commodity Index (100)
Major Foreign Currencies (400)
Other Foreign Currencies (100)
U.S. Dollar Index (50)
Natural Resources:
Copper (100)
Crude Oil, Sweet (350)
Crude Oil, Sweet–No. 2 Heating Oil Crack Spread (250)
Crude Oil, Sweet–Unleaded Gasoline Crack Spread (150)
Gold (200)
Natural Gas (200)
No. 2 Heating Oil (250)
Platinum (50)
Silver Bullion (150)
Unleaded Gasoline (150)
Unleaded Gasoline–No. 2 Heating Oil Spread Swap (150)
Security Futures Products:
Individual Equity Security (1,000)
Narrow-Based Security Index (200)
Hedge Street Products. (125,000) \1\
TRAKRS (50,000) \1\
All Other Commodities (25)
\1\ For purposes of part 17, positions in HedgeStreet Products and TRAKRS should be reported by rounding down to the nearest 1,000 contracts and dividing by 1,000.
[69 FR 76397, Dec. 21, 2004, as amended at 71 FR 37817, July 3, 2006]
* The above CFTC Regulation 15.03 can be found on the government website here.
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Cole-Frieman & Mallon LLP provides legal advice and compliance consulting for the managed futures industry. Bart Mallon can be reached directly at 415-868-5345.