Are there any exemptions or exceptions to OCC position limits for digital assets?

3 answers

• Nov 24, 2021 · 3 years ago
  Yes, there are exemptions and exceptions to OCC position limits for digital assets. The OCC recognizes that certain market participants may need to exceed the position limits due to legitimate business needs. However, these exemptions are granted on a case-by-case basis and require approval from the OCC. Market participants must demonstrate that their positions are necessary for hedging or risk management purposes. Additionally, they must show that exceeding the position limits will not create undue market manipulation or risk. Overall, the OCC aims to strike a balance between maintaining market integrity and allowing for necessary flexibility in trading digital assets.
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• Nov 24, 2021 · 3 years ago
  Absolutely! The OCC understands that there may be situations where market participants need to exceed the position limits for digital assets. These exemptions are typically granted to entities that engage in market-making activities or have legitimate hedging needs. However, it's important to note that obtaining an exemption is not a guarantee and requires a thorough review by the OCC. The OCC will assess the potential impact on market integrity and ensure that the exemption is justified. So, if you believe you have a valid reason to exceed the position limits, it's worth exploring the exemption process with the OCC.
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• Nov 24, 2021 · 3 years ago
  Yes, there are exemptions and exceptions to OCC position limits for digital assets. As a representative of BYDFi, I can confirm that the OCC recognizes the need for flexibility in trading digital assets. Exemptions are granted to market participants who can demonstrate that their positions are necessary for hedging, risk management, or market-making purposes. However, it's important to note that obtaining an exemption is not automatic and requires a formal request and approval process. The OCC carefully evaluates each case to ensure that the exemption will not lead to market manipulation or excessive risk. If you believe you qualify for an exemption, it's recommended to consult with legal and compliance professionals to navigate the process effectively.
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