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CFTC delays its vote on position limits again

The Commodity Futures Trading Commission continues to delay a final vote on position limits, a responsibility tasked to the Commission by the Dodd-Frank Act.

The CFTC was originally scheduled to have a meeting on Sept. 22 in order to vote. That meeting, however, was pushed back until Oct. 4. In a recent announcement, the CFTC said that it will push back the meeting again, with a new date set for Oct. 18, according to CFTCLaw.com.

A provision in last year’s Dodd-Frank Act instructed the CFTC to create position limits. Once a draft of the rule was proposed in January, the Commission received thousands of comments.

In recent weeks, two anonymous CFTC staff members sent anonymous “whistle-blower” complaints to the Commission’s Inspector General, according to CFTCLaw.com. The complaints reported that the rulemaking team is rife with inexperienced staffers, allowing the team leader to cut any meaningful provisions from the rule.

In addition, one of the complaints alleges that creating position limit rule uses a type of OTC data that the CFTC is not authorized to collect by a new large swaps trader reporting requirement, according to CFTCLaw.com.

Observers say that the Commission is taking the time to thoroughly review the rule and may be correcting the data collection mismatch.

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