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What is intended with "non-reportable" and "dealer intermediary" long/ short positions in the CFTC COT report HERE?

My toughts of "dealer intermediary" is that they could be the fx brokers; in other words if the dealer intermediary are detain more shorts, retailers are long and viceversa. Possible?

  • The CFTC site article gives a definition of the term "dealer/intermediary" as used in CFTC reporting. Regarding nonreportable positions, these will be positions which are less than the reporting level established by the CFTC. Generally, positions are only reportable if they are above a certain size. – user41790 Nov 8 '19 at 1:51
  • Nick, many thanks for pointing to the pdf. Last question: currently building a fx strategy based on the cot report and volumes. Do you suggest to use only the "non-commercial" - "commercial" report as the category report seems to be also non-speculative nature as you stated in my previous question? – Someone33 Nov 8 '19 at 15:27
  • The CFTC defines a "commercial trader" as one "who uses the futures market to primarily hedge their business activities", so this would suggest that "commercial" positions are largely non-speculative reportable positions. On the other hand, "non-commercial" may include both speculative and non-speculative positions. For example, an institutional broker my have speculative positions on their proprietary accounts but also non-speculative positions used to hedge any risk in their asset management business. E.g., an ETF provider whose ETFs include currency hedges. – user41790 Nov 8 '19 at 20:04
  • What i noticed on my charts is days before a new trend (swing) starts in a currency pair there are a few candles with abnormal high volume which was compared with the cot data (non-commercial i think). You can literally see that "someone" has bought or sold the currency which seems to me to be purely speculative positions; That's why i asked. What confused me was the difference of numbers of the 2 cot reports, but after your clarifications i think i need to focalize only on the non-commercial numbers. If you're interested i can send/ upload you some charts about it. Thanks a lot. – Someone33 Nov 9 '19 at 3:39
  • It is an interesting idea, however keep in mind that the volumes in CME currency futures are dwarfed by the trading volumes in the global foreign exchange market place which totals about six-trillion dollars a day. The global foreign exchange market place is the world's largest market place. Having said that, evidence of building momentum should be present in both market places so futures volumes alone may provide sufficient information. Good luck with your trading. PS. I'm not sure, but a report called "legacy" may not be around much longer. – user41790 Nov 9 '19 at 5:00

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