Tuesday, October 18, 2011

Breaking News- CFTC Position Limits Ruling

The CFTC, Commodities Future and Trading Commission, has made a decision regarding position limits.  In 2010, the Dodd-Frank’s Act was passed which provided general financial oversight to prevent excessive speculation in the commodity markets.  Specifically, it targeted putting a limit into how many total contracts any one speculative trader, JP Morgue, etc., could control. 

The CFTC has ruled to pass the rule 3 to 2!!  See the live commentary as it was happening here.  A more formal summary will follow.

Yea - Gensler Chilton Dunn
Nay - O'Malia Summers

For what happens next after the passage of position limits by the CFTC, see The Doc's analysis on the implications of position limits.