A divided Commodity Futures Trading Commission on Thursday appealed a federal court ruling against its plan to set limits on speculative positions on 28 different commodity contracts and argued that the rule properly addressed Congress's intent that derivatives markets be fair and competitive.
The appeal, approved on a 3-2 vote of the commission, comes after the U.S. District Court of Columbia in September ruled against the CFTC's plan. The court said the 2010 Dodd-Frank law did not give the agency a "clear and unambiguous mandate" to set position limits without showing they were necessary. It was the first court rejection for any CFTC rule in the agency's history.
CFTC Chairman Gary Gensler said in announcing the appeal, "The rule addresses Congress' concern that that no single trader be permitted to obtain too large a share of the market, and that derivatives markets remain fair and competitive. I believe it is critically important that these position limits be established as
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