U.S. Commodity Futures Trading Commission (CFTC) Chairman Gary Gensler recently announced the desire of the government agency to revisit its recent push to create position limits on certain commodities derivatives products.
In testimony given before the U.S. Senate Banking, Housing and Urban Affairs Committee, Gensler said in a statement that "in addition, as Congress directed the CFTC to do, I believe it's critical that we continue our efforts to put in place aggregate speculative position limits across futures and swaps on physical commodities."
The CFTC had previously approved a rule governing these limits of speculative positions, but in September 2012 this law was struck down as unconstitutional by Judge Robert Wilkins of the U.S. District Court for the District of Columbia. Two months later, the federal government regulator announced that it would appeal this court decision in an effort to get these limits instated.
CFTC Commissioner Bart Chilton has also advocated the importance of maintaining these limits for commodity derivatives positions, stating that such rules have encountered fierce resistance from industry participants, which have fought the rules through both lobbying and through the court system, according to CFTC Law.
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