FIA Responds To The CFTC’s Proposed Position Limits Rule

The Futures Industry Association issued the following statement on behalf of FIA President John Damgard:

We commend the CFTC leadership for considering the proposed rule on position limits at a public meeting. It is helpful for the industry to hear the views of the Commissioners and staff on such an important and complex proposal.

oday’s discussion highlighted the key features of the CFTC’s proposed rules and raised questions about the potential impact on the regulated U.S. futures markets. We look forward to submitting a detailed response to the CFTC before the end of the comment period.

Several CFTC Commissioners expressed concern today about the potential harm that this proposal could cause by creating incentives for market users, including speculators, to migrate to markets outside the CFTC’s jurisdiction. We would view with great concern the adoption of any policy on position limits that would diminish the transparency of the energy markets or put U.S. exchanges at a competitive disadvantage.