The CFTC Proposes a New Approach to Federal Position Limits - Will This One Stick?

At its open meeting held on January 30, 2020, the Commodity Futures Trading Commission ("CFTC" or "the Commission") approved a proposed rulemaking to institute federal position limits in an effort to prevent excessive speculation, squeezes, and corners in both futures positions and "economically equivalent" swaps for certain specified commodities. The vote was 3-2 with all Republicans supporting and all Democrats opposing. The proposal approved on January 30 is the Commission’s latest effort to propose position limits as part of its implementation of the Dodd-Frank Act. The initial rules,...