The U.S. Commodity Futures Trading Commission may decide as soon as this week to appeal a judge’s ruling against trading limits for oil, natural gas and other commodities, according to two people briefed on the matter.
The five-member commission plans to vote following a recommendation from the agency’s general counsel’s office to appeal the ruling, according to the people, who spoke on condition of anonymity because the schedule is private. U.S. District Judge Robert Wilkins ruled on Sept. 28 that the CFTC failed to assess whether the limits imposed under the Dodd-Frank Act were necessary and appropriate.
The decision blocked rules scheduled to take effect Oct. 12 that were challenged by the Securities Industry and Financial Markets Association and International Swaps and Derivatives Association Inc. The associations represent JPMorgan Chase & Co., Goldman Sachs Group Inc., Morgan Stanley and other banks and energy-trading firms.
Steven Adamske, the CFTC’s spokesman, declined to comment.
Bart Chilton, one of three Democrats on the commission, has urged the agency to appeal the ruling. The agency should also consider a separate rulemaking that finds speculation limits are necessary, Chilton said in remarks prepared for a speech today at a High-Frequency Trading Leaders Forum conference in Chicago.
The case is International Swaps and Derivatives Association v. U.S. Commodity Futures Trading Commission, 11-02146, U.S. District Court, District of Columbia (Washington).
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