CFTC’s dilemma over capping market positions

Author: | Published: 16 Oct 2012

The US District Court for the District of Columbia has vacated and remanded the rule that would have capped positions in futures and swaps contracts. The US Commodity Futures Trading Commission (CFTC) is now left with two options.

The first is to appeal the decision to the DC circuit court. This court blocked the Securities & Exchange Commission’s proxy access rule last year on grounds the regulator’s cost-benefit analysis fell short of supporting a final rule. The second alternative is to propose...