A majority of the Commodity Futures Trading Commission supports appealing a judge's ruling against limits on commodity-market speculation, Commissioner Mark Wetjen said on Thursday.
The five-member commission approved position limits last year to cut down on excessive speculation in commodity markets. The rules limit the number of contracts traders can hold in 28-commodities, including oil, coffee and gold.
However, U.S. District Court Judge Robert Wilkins on September 28 sent the rule back to the CFTC for further consideration, just two weeks before limits were set to take effect. He said the Dodd-Frank financial oversight law did not give the commission a "clear and unambiguous mandate" to set position limits without showing they were necessary.
"There are three commissioners who have made it known that they support an appeal and so the next step is to formalize the decision," Wetjen told reporters on the sidelines of the annual Futures Industry Association conference in Chicago.
This article is only available in full to Compliance Complete
North America Subscribers who are logged in.
Please log in to see if you can view this content.