[nicola_tesla]

So do I understand you correctly that the US market is not enforcing position limits but overseas markets are ?

Also, that it’s only US-based funds (pension, IBs, hedges whatever) that don’t get classified as specs and not other “funds” like SWFs and other overseas entities ?

[SAJ]

You're pretty close. There is at law a thing called the ''swaps exemption'' for banks acting as agents for clients. Under this exemption, there are no position limits for the bank acting as agent, which means there are no position limits for the bank's client.

This situation is unique to the US. I don't know if any hedge funds are using investment banks in this fashion. I don't **think** so, because we should have heard about it by now if they were.

The US exchange are certainly enforcing position limits -- the point here is that the biggest specs are in a situation where they are not subject to the limits. This simply has to be stopped.

Legitimate industry hedgers, aka 'commercials', should continue to be exempt from position limits, of course.