CFTC advances position plan, more hurdles ahead

News Article

Big speculators could face curbs on wheeling and dealing in commodity markets after the CFTC on Thursday advanced a plan to cap large positions, but internal dissent could delay final adoption of the plan for months or longer.

The plan, adopted in a 4-1 vote to allow it to move to the public comment stage, would attempt to curb positions investors can hold in commodity markets, with the aim of preventing large players from controlling the market.

An important swing vote on the five-member commission, Michael Dunn, however, expressed skepticism about whether curbs on their trades would prevent a large run-up in prices. Dunn said he wants "statistical or economic analysis" before the limit plan moves to a final vote. Without Dunn's support, it will be extremely difficult for Chairman Gensler to finalize the rule.

Publication

Reuters

Date

January 13, 2011

Cross References (links may require a Cabinet subscription)

Dodd-Frank Act, Title VII, Sec. 737

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