Wednesday, September 28, 2011

CFTC Pushes Back Position Limits Meeting from Oct 4th to Oct 18th

The NY times has reported that the CFTC's Oct 4th meeting to vote on position limits has been delayed again until Oct 18th.
Clearly a 43% raid in silver to $26 was not enough for The Morgue to completely extricate itself from its 120 Million ounce naked short silver position- Blythe and the boyz now require additional time.
Don't expect a vote on position limits in silver until the day that JP Morgan has covered its last silver short and has gone long silver.

The Commodity Futures Trading Commission decided on Tuesday to push back an Oct. 4 meeting during which the agency had been scheduled to vote on the rules. The commission’s chairman, Gary Gensler, is expected to notify his fellow commissioners that the agency is likely to take up the proposal on Oct. 18.

Bart Chilton, a Democratic member of the agency and a devoted supporter of the so-called position limits plan, lamented the delay. “I continue to be troubled by the pace of implementing position limits as Congress has directed,” he said.
The agency, which must enact some 50 new rules under the Dodd-Frank financial regulatory overhaul, has struggled to keep pace. It already announced plans to push some rules into 2012 — a delay of more than six months.
The agency’s decision on Tuesday was the latest in a long line of setbacks for the position limits plan. Under the Dodd-Frank Act, the limits were supposed to kick in during January. Then the commission planned to vote on the proposal in September, but delayed it to further bolster the cost-benefit section of the rule.
“I want to be sensitive to the costs,” Scott O’Malia, a Republican member of the commission, said recently.
The position limits would cap the amount of futures contracts that a single trader or firm can hold on 28 commodities like oil, wheat and corn, a response to wild price fluctuations that can hurt consumers at the gas pump and in the supermarket. Existing limits apply to only nine items.
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