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December 20, 2010

Citing a letter from Senator Harkin, stating the that position limit requirement is "mandatory rather than 'permissive,' and has a specified deadline," CFTC Commissioner Bart Chilton declares that the "right" path for the Commission is to head "True North," and put in place the limits within the statutory deadline as Congress intended. Date December 16, 2010 Cross Reference (links require a Cabinet subscription) Dodd-Frank Act, Title VII, Sec. 737

December 20, 2010

Asking "what are position limits supposed to do, exactly, and how?" economist Craig Pirrong explains why limits currently being considered by the CFTC appear to be "the financial equivalent of leeches or faith heeling." In particular, Pirrong argues that the rationale for the imposition of limits to control "excessive speculation" is "dubious theoretically and empirically," and "will have little, if any effect, on the size, strength, or price impact of [speculative] waves." Pirrong also points out that the concerns with positions held by large funds such as ETFs " is misplaced": "If prices

December 20, 2010

CFTC Commissioner Jill Sommers explains her reasons for opposing the CFTC's proposed rule regarding swap execution facilities, noting that the proposed rule requires that an SEF provide market participants "with the ability to post both firm and indicative quotes on a centralized electronic screen accessible to all market participants who have access to the swap execution facility," something that in her view is not mandated by Dodd-Frank and may limit competition by shutting out applicants who wish to offer request for quote services without this functionality. She also reiterates her

December 21, 2010

Ryan McKee, a senior director focusing on derivatives regulation at the U.S. Chamber of Commerce, has been appointed as a professional staffer at the House of Representatives Committee on Agriculture under Frank Lucas (R., Okla.), the committee's incoming chairman. McKee was best known for defending corporations against harsh new financial regulations that could raise their costs of hedging. McKee begins her new post in early January. Her role will be to liaise with the CFTC. Date Dec. 20, 2010 Cross References (links require a Cabinet subscription) Dodd-Frank Act, Title VII

December 21, 2010

New U.S. rules to limit speculation in commodity markets could move forward quickly, and with few alterations, after objections by the measure's most vocal supporter unexpectedly delayed a key vote. CFTC Chairman Gary Gensler, abruptly postponed a vote on Thursday to open proposed new position limits to public comment, evidence of mounting pressures internally as the agency implements dozens of rules meant to make markets safer and more transparent. Gensler has managed to maneuver around the two Republican commissioners who have several times voted against releasing new rules, concerned they