From the October 01, 2009 issue of Futures Magazine • Subscribe!

Swift action on no-action letters

Less than three weeks after holding hearings on energy position limits and hedge exemptions, the CFTC withdrew two no-action letters that provided relief from Federal agricultural speculative position limits for DB Commodity Services LLC and Gresham Investment Management (GIM) whose founder, Henry Jarecki, participated in the CFTC hearings and argued against the idea that index funds unduly influenced market prices.

CFTC Chairman Gary Gensler stated in the release, “I believe that position limits should be consistently applied and vigorously enforced.”

The release noted that “the withdrawal of these no-action positions is very specific and limited and does not affect any other no-action or regulatory positions taken by the CFTC.”

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