CFTC reopens position-limits comments

The CFTC is to provide an encore to one of its longer-running sagas, announcing yesterday that it will reopen the comments period on its position limits rulemaking. The new period begins today and remains open for 45 days.  The move is in anticipation of questions and comments that may arise from the Commission’s Agricultural Advisory Committee, due to meet on 9 December 2014.

The last proposal, itself a response to the judicial rejection of its predecessor, was billed as an “unassailable formulation”; presumably better defended for external attacks than internal challenge. Reopening the comment period is a strong indication that the highly controversial position limits rule is far from being finalised. A new round of market comment, perhaps combined with an oil-price plunge related relaxation of pressure to witch-hunt speculators, may result in a simpler and less costly-to-comply new proposal. Commissioner Sharon Bowen released a separate statement, supporting the new opportunity for comment, while urging speed in its completion; stating that a final rule should be published by spring 2015.