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I got email from the CFTC and from Interactive Brokers regarding form 40. I'm a pretty "small" guy and my position sizes are by magnitudes smaller than the limits indicated on the site that was linked above in this thread (I'm not allowed in this message board to include links).
I have a few equity index and treasury futures in my IRA and in my self-administered 401(k) and another retirement trust, that I roll over every quarter.
Why am I getting the form 40 reporting emails? Possibly a mistake by IB?
Also, I get 3 emails simultaneously every time, but all 3 have the same 9-digit registration code. If I were required to file the form, is it for all 3 entities separately, or one form for me as the actual trader on behalf of the trusts? None of the emails mention an account number of entity name that they refer to, only me personally.
I do remember that the first time I received this form (it was actually snail-mailed to me) I was like you, quite surprised, and to be honest a little alarmed. I believe I actually called the CFTC and found them very helpful in explaining what it was and what I needed to do. So I would recommend that route.
Don't worry, if you actually are subject to large trader reporting, then all you have to do is file this form every few years, and only when the CFTC contact you. There is no position reporting etc that you have to do yourself. Everything else is done automatically by your broker/the CFTC.
Thank you. I hope the question is not too private, but if you don't want to let me know your account size range - my positions are less than 5 for each or a few equity index and treasury futures positions, and about 25 for interest rates futures - way below the limits. Any thoughts on why I got the solicitation to fill out the large trader form? I called IB, they said the can do nothing about it, as the whole thing was initiated by CFTC. But CFTC must have received my data from IB. I have been unable to contact CFTC on the phone, I can't find a suitable phone nr and all that I tried go to answering machines. Do you happen to know the phone nr to call them about the large trader reporting?
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My positions definitely exceed the level required for reporting. I'm a spread trader so that's actually a lot easier than you might think. Have you considered the total position summed across all accounts as thats what the CFTC look at. With regards to your specific situation I'm sorry I have nothing to offer. As @myrrdin found out, 25 lots of the "Bloomberg Commodity Index" contract - which is a tiny contract - fell into the 'other commodity' positions. Is it possible you have a position in a smaller less known contract that doesn't have a specific position limit?
IB's own website says they gave the data to the CFTC
IBKR, as a registered FCM providing clients with access to those markets, is obligated to report to the CFTC information on clients who hold a position in a quantity that exceeds defined thresholds
I will DM you the contact information of the last person at the CFTC I talked to about this in 2019. Not sure if they are still the relevant contact but its better than nothing.
I found out that I exceeded the reporting threshold of the SOFR futures. I used a short position in SOFR futures instead of Eurodollar futures for interest rate hedging, because my understanding is that much of the Eurodollar futures volume will shift to SOFR futures sooner or later anyways, and my order size didn't seem to impact the market, and the spread was similarly tight as that for Eurodollar futures. Also, SOFR rates are slightly lower, reducing the hedging cost.
I don't know why the the reporting threshold for SOFR futures is much lower than that for Eurodollar futures. Maybe it's because of the lower volume.
The SOFR futures are not on the list with the thresholds. Does anybody have a link to an updated list? Thanks!
