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CFTC Speculation Limits May Pass Quietly, Unchanged

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 could damage the market. This week he pushed forward with a plan to set up special exchanges to trade swaps after delaying a vote last week due to objections. He faced concerns from the opposite corner on Thursday -- Bart Chilton, a Democrat and most ardent supporter of limits, who argued that the two-part approach would leave markets unprotected from rampant speculation for too long. A source referring to Chilton said: "He's holding the whole thing hostage to get what he wants, which is something to go into effect immediately, regardless of the lack of swap position data."

Date
December 20, 2010

Cross Reference (links require a Cabinet subscription)
Dodd-Frank Act, Title VII, Sec. 737

Tags

Regulated Activities
Position Limits
Regulated Entities
FCMs and IBs, Floor Brokers
Body of Law
CEA Regulation
Jurisdiction
US - Federal
Organization
CFTC, NFA, CFTC Markets
Sub-Author
CFTC