Court Vacates CFTC Position Limits Rules

October 01, 2012

Last Friday, September 28th, the U.S. Federal District Court in Washington, D.C. (“Court”) struck down the commodity speculative position limit rulemaking that the U.S. Commodity Futures Trading Commission (“CFTC”) had adopted on October 18, 2011, which was scheduled to become effective on October 12, 2012. Significantly for the first time, the final position limit rules applied to over-the-counter swaps and other derivatives (also referred to as economically equivalent or look-alike contracts). The plaintiffs in the action were the International Swaps and Derivatives Association and the Securities Industry and Financial Markets Association (“Plaintiffs”).

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