Two Associations (the Securities Industry and Financial Markets Association and the International Swaps and Derivatives Association) sued the CFTC stating that position limits on the number of contracts would damage their business. A federal judge ruled against the CFTC.
It is passing strange that those who brought down the financial system in 2008 still cannot see why they should be regulated so that another crisis will be averted.
Judge throws out CFTC's position limits rule
By Alexander Alper and Karey Wutkowski - Gata.org
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Wilkins ruled that, by law, the CFTC was required to prove that the position limits in commodity markets are necessary to diminish or prevent excessive speculation.
He also ruled that the amendments to the 2010 Dodd-Frank financial oversight law "do not constitute a clear and unambiguous mandate to set position limits, as the commission argues."
The ruling is a major victory for traders just two weeks before parts of the new position limits rule were scheduled to go into effect.
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