A Reuters commentator suggests the futures industry is employing a risky strategy by opposing recently proposed position limits.
Two bills, one proposed by Rep. Barney Frank (D-Mass.) and passed by the House in December 2009 and one sponsored by Sen. Chris Dodd (D-Conn.) in the Senate, would expand the Commodity Futures Trading Commission's powers significantly. For example, the regulator would receive jurisdiction over OTC derivatives and greater leeway in imposing position limits in various markets.
The futures industry, via the Futures Industry Association, has objected to this expansion of powers. Reuters commentator John Kemp argues that the group is taking a high-risk approach, risking even more restrictive legislation if its arguments fail.
U.S. futures industry risks Pyrrhic victory in battle with CFTC: Kemp