Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:The CFTC Should Be Scared Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, October 05, 2012

The CFTC Should Be Scared

News summary by MFWire's editors

The Commodity Futures Trading Commission struggles to recover from a staggering loss in its efforts to pass regulations governing investment funds. Too bad they're up against Eugene Scalia of Gibson Dunn, the industry's go-to dark knight for challenging financial policy.

He's repping the Investment Company Institute and the U.S. Chamber of Commerce today in court to fight against a rule that would require advisors of mutual funds and ETFs to register with the CFTC depending on the occasion, reports Reuters. These situations include instances where funds' non-hedging commodity trades exceed certain thresholds.

The rule came to fruition at the behest of the self-regulatory National Future Association, which expressed concern that certain funds were exploiting SEC regulations to market managed futures strategies and escaping proper regulatory oversight. Meanwhile, ICI and the Chamber of Commerce argue that the measure duplicates mutual fund regulations already put in place by the SEC.

Two main issues for the CFTC:

This latest fight comes just one week after it had its first rule ever tossed out. The "position limits" rule is a reform that was included in the 2010 Dodd-Frank financial reform law in response to gasoline price concerns. However, U.S. District Court Judge Robert Wilkins had ruled that Dodd-Frank did not give the agency a "clear and unambiguous mandate" to set position limits without showing they were necessary.

Plus, if the CFTC loses their case today, that ruling could be used to fend off a number of other reforms.

Be afraid, be very afraid, experts say.

"The CFTC and the SEC are still struggling with how to get the cost-benefit analysis done in ways that will satisfy the courts," Geoffrey Aronow, a partner at Bingham McClutchen who previously served as enforcement director for the agency, told Reuters. "I am sure any agency in this uncertain area can't be highly confident." 

Edited by: Irene Park


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2018
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use