Position Limits - Overview

Position Limits are quantitative thresholds which market participants may not exceed unless they have an approved exemption. Any positions in excess of these limits, including those established intraday, would be considered a rule violation pursuant to Rule 562.

Position Limits applicable for each contract are listed in each Exchange’s Position Limit Table that is available on the CME Group website. Such limits are calculated on a net futures-equivalent basis by contract and include contracts that aggregate into one or more base contracts as set forth in the Table.

Position limits for Spot Month and the subsequent limit(s) in the Second Spot Month/Single Month/All Months may vary based on the contract. The difference between Spot Month, Second Spot Month, Single Month, and All Month for purposes of position limits and position accountability levels is as follows: 

1. “Spot Month Limit” goes into effect as a particular contract month becomes the closest contract month to expiration or as a contract nears expiration.
2. “Subsequent Spot Month Limit” goes into effect after the initial spot month limit. It is lower than spot month limits.
3. “Single Month Limit” applies to the position held in any given contract month outside of the spot period effective date. 
4. “All Month Limit” applies to positions held across all contract months of a particular product and is effective at all times.

In addition, the Market Regulation Department publishes a monthly notice of spot month effective dates for core products. The notice is posted on the CME Group website and is also available via an email subscription that users can register to receive via the Subscription Center.

Other aspects of position limits such as calculations and exemptions, as well as position accountability levels will be available in other modules.

This is part of a course on position limits and accountability levels. For official regulatory guidance, reference the applicable Market Regulation Advisory Notice.