An Update on the Debate over Commodity Futures Position Limits

5 Pages Posted: 8 Aug 2015

See all articles by Hilary Till

Hilary Till

Premia Research LLC; EDHEC-Risk Institute; J.P. Morgan Center for Commodities, University of Colorado Denver Business School; Global Commodities Applied Research Digest

Date Written: January 11, 2013

Abstract

On September 28th, 2012 a federal judge struck down the U.S. Commodity Futures Trading Commission’s (CFTC’s) current iteration of federal position limits on holdings of commodity futures contracts. A month and a half later, the CFTC announced that the commission would appeal the court’s decision. The federal court’s 50-page decision, which vacated the CFTC’s position-limit rule, was not political. When one has the rule-of-law, decisions are based on logic, and this ruling is very logical. The article discusses this ruling as well as the challenges that the CFTC might have in challenging it.

Keywords: Commodity markets, hedgers, speculators, futures markets, risk, position limits

JEL Classification: G1, G11, G18

Suggested Citation

Till, Hilary, An Update on the Debate over Commodity Futures Position Limits (January 11, 2013). Available at SSRN: https://ssrn.com/abstract=2641327 or http://dx.doi.org/10.2139/ssrn.2641327

Hilary Till (Contact Author)

Premia Research LLC ( email )

United States
312-583-1137 (Phone)
312-873-3914 (Fax)

HOME PAGE: http://customindices.spindices.com/custom-index-calculations/premia/all

EDHEC-Risk Institute

Nice
France

HOME PAGE: http://risk.edhec.edu/

J.P. Morgan Center for Commodities, University of Colorado Denver Business School ( email )

1475 Lawrence St.
Denver, CO 80202
United States

HOME PAGE: http://www.business.ucdenver.edu/commodities

Global Commodities Applied Research Digest ( email )

J.P. Morgan Center for Commodities
1475 Lawrence Street
Denver, CO 80202
United States

HOME PAGE: http://www.jpmcc-gcard.com/hilary-till

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