The Commitment of Traders (COT) report is one of the most powerful tools for understanding institutional positioning in the futures market. It is published weekly by the Commodity Futures Trading Commission and shows how large traders are positioned across major markets, including currency futures. The COT report reflects positions held as of the close of business on Tuesday and is released every Friday at 3:30 PM Eastern Time (US) by the CFTC.
1. Who is actually required to report positions in the COT report?
2. And what are the minimum reporting levels?
This article explains how reporting works, who must report, and why it matters for traders.
What Is the COT Reporting Requirement?
Each futures contract has its own reportable threshold set by the CFTC. These levels vary by market and exchange. When a trader’s position in a specific contract month reaches or exceeds that threshold, they must disclose their position daily to the Commission through a reporting firm.
for example, gold futures often have a reportable level around 200+ contracts while crude oil contracts might have levels near 350+ contracts. Smaller traders below these thresholds are grouped as non-reportable and are not individually listed in the COT data.
Who Is Obligated to Report Positions?
A trader must report positions when their holdings reach or exceed the CFTC’s “reportable level” for a specific contract.
These typically include:
1. Commercial Hedgers
Companies that use futures to hedge business exposure, such as:
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Banks
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Exporters and importers
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Commodity producers
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Energy firms
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Multinational corporations
Their purpose is risk management, not speculation.
2. Large Speculators
These are professional trading entities seeking profit, including:
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Hedge funds
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Commodity Trading Advisors (CTAs)
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Asset managers
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Proprietary trading firms
This group is often labeled as Non-Commercial traders in the COT report.
They are the primary drivers of speculative trends.
3. Swap Dealers
Large financial institutions that structure and manage derivative exposure for clients.
How Reporting Works:
Large traders file position data directly with the CFTC.
The CFTC aggregates the data and releases the COT report every Friday, reflecting positions as of Tuesday.
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Positions across multiple accounts under the same control are combined.
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This prevents institutions from splitting positions to avoid reporting.
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The data is grouped into Commercial, Non-Commercial, and Non-Reportable categories.
Because reporting is mandatory once traders exceed minimum thresholds, the report provides a structured view of how major market participants are positioned.
“Trading futures, forex, and other derivatives involves significant risk. This article is for educational purposes only and does not constitute financial advice. Always do your own research before trading.”
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