Position limits and the burden of proof
In a forthcoming filing with the CFTC previewed on his website, Professor Craig Pirrong, one of the world's leading authorities on commodity trading, launched a spirited attack on the proposed new limits. Pirrong warns the plans are "fundamentally flawed". They go far beyond what is necessary to meet the CFTC's legitimate concerns and would constrain legitimate trading activity and market liquidity, raising costs to all market users.
"There are less intrusive and expansive policies that would address the real concerns that the Commission has raised, but which would not interfere with beneficial, legitimate trading activities that pose no such concerns," according to Pirrong.
Publication
Commodities Now
Date
January 25, 2011
Cross References (links may require a Cabinet subscription)
Dodd-Frank Act, Title VII, Sec. 737