The CFTC re-proposed rules on position limits for speculative commodities after the original position limits rules were struck down by a federal court last year because they did not comply with Dodd-Frank rulemaking requirements. This update provides extensive detail on the re-proposed rules. On November 5, 2013, the CFTC released a notice of proposed rulemaking (NPR) re-proposing speculative commodity position limits after industry groups challenged, and federal courts vacated, the previously issued limits. The courts struck down the original position limits rules because the CFTC failed to demonstrate that they were appropriate and necessary to curb commodity price volatility and manipulation. While much of the re-proposed rules remain unchanged from the original, the NPR, among other things, lists 132 reports and studies that support position limits as a tool to curb volatility stemming from excessive speculation in the markets, presumably to guard against a similar result. The
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