ISDA and SIFMA File Lawsuits Challenging Commodity Futures Trading Commission’s Rule on Position Limits (Press Release)
ISDA and SIFMA filed a legal challenge to the CFTC's final rules that limit the positions that investors may own in certain commodities. The Associations believe that the Position Limits Rule may adversely impact commodities markets and market participants, including end-users, by reducing liquidity and increasing price volatility. In addition, the Associations contend that the CFTC's decision-making process in enacting the Rule was procedurally flawed. Among other deficiencies, the CFTC adopted the Rule without making findings as to the necessity and appropriateness of the position limits, as required by statute. Furthermore, the CFTC failed to conduct any meaningful cost-benefit analysis and lacked a reasoned basis for its rule.
Complaint in the U.S. District Court for the District of Columbia
Petition for review in the U.S. Court of Appeals for the District of Columbia
Cross References: Dodd-Frank Section 737; 76 FR 71626; CFTC and SEC facing legal anxiety over cost-benefit analyses.