Energy Firms Concerned Over Dodd-Frank Position Limits

The US Commodity Futures Trading Commission (CFTC) has made another proposal regarding the speculative position limits on commodity derivatives which have energy firms on edge. The earlier proposal of the CFTC was rejected by the federal courts in September 2012.

Why CFTC is pushing position limits

According to the Wall Street Transparency and Accountability Act of 2010 (Dodd-Frank), CFTC must amend the position limits for commodity markets in order to conform with the law. The Dodd-Frank Act had amended position limits on certain assets in 2010 but had exempted 28 core physical commodity futures, swaps and options.