Mr. David A. Stawick
Secretary
U.S. Commodity Futures Trading Commission
1155 21st Street, N.W.
Washington, D.C. 20581

Re: Notice of Proposed Rulemaking – Aggregation, Position Limits for Futures and Swaps, 17 C.F.R. Part 151, Fed. Reg. 31768 (May 30, 2012)

Dear Mr. Stawick:

The International Swaps and Derivatives Association, Inc.1 (“ISDA”) and the Securities Industry and Financial Markets Association2 (“SIFMA”) appreciate the opportunity to provide the Commodity Futures Trading Commission (“Commission”) with comments and recommendations regarding the Commission’s Notice of Proposed Rulemaking on Aggregation, Position Limits for Futures and Swaps (the “Proposed Aggregation Rule” or “Aggregation Notice”).3 The Aggregation Notice was issued in response to a petition by the Commercial Energy Working Group, and supporting comments, seeking relief from aggregation requirements in the Commission’s rule on Position Limits for Derivatives (“Position Limits Rule” or “Rule”) While we appreciate the Commission’s attempt to address one of several serious deficiencies in its Position Limits Rule, it must be recognized that the Proposed Aggregation Rule purports to amend only a portion of a rule that is fundamentally flawed. The Position Limits Rule establishes the commodities and positions that will be aggregated, and the limits under which the Proposed Aggregation Rule will operate, but it was promulgated without finding that position limits were necessary or appropriate and without conducting an adequate cost-benefit analysis. The persistent substantive and procedural flaws in the Position Limits Rule necessarily affect the proposed aggregation amendments. Moreover, while the Aggregation Notice is a positive step in the Commission’s consideration of position limits, it continues to impose unnecessary burdens and to rest upon a misunderstanding of the Commission’s statutory responsibilities.

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