Mark Wetjen, a Commissioner of the Commodity Futures Trading Commission (CFTC) said that the regulator is considering dropping its appeal to defend its position limits rule. Commissioner Wetjen noted that the CFTC is putting the finishing touches on a revised position limits rule.
“What’s being discussed now is what’s the best strategy to get position limits in place as quickly as possible,” he said. “Is it one track, the appeals track, is it another track, the rule making track, or is it a combination of the two,” Commissioner Wetjen said.
Reuters reported that Commissioner Wetjen also said, “If you’re in favour of trying to get (position limits) in place as expeditiously as possible, it shouldn’t be a given that you pursue an appeal and you pursue a rulemaking at the same time.”
The new position limits rule would likely contain a “better legal justification to conform with the court’s ruling that the agency had failed to prove that the limits were needed, and will better weigh the costs and benefits of the rule,” Reuters noted.
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