CFTC eases on hedging rules, pleasing grain traders

The Commodity Futures Trading Commission has responded to the concerns of agribusiness by loosening its restrictions on the type of hedging strategies that can be exempted from position limits. A supplemental proposal released by the CFTC would ensure that anticipatory hedging practices could qualify for a “bona fide” hedging exemption. The proposal also would provide flexibility to commodity exchanges to recognize certain positions as bona fide hedging, subject to CFTC oversight.