Two industry trade groups moved on Thursday to appeal a judge's decision earlier this month upholding a new regulation for the mutual funds industry, in a ruling that came as a rare win for the U.S Commodity Futures Trading Commission.
The Investment Company Institute and the U.S. Chamber of Commerce said the rule duplicates existing rules enforced by securities regulators. They said the CFTC did not sufficiently consider the impact on markets when it wrote its new rule.
"Nothing in the district court's decision changes the fact that the CFTC did not adequately consider alternative approaches to its flawed and overly-broad approach," David Hirschmann, president of the chamber's Center for Capital Markets Competitiveness, said in a statement.
The mutual funds rule requires advisers to register with the CFTC if commodity trades, including futures, swaps and options, exceed certain thresholds. That would trigger record-keeping requirements, disclosure obligations and other responsibilities.
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