The Investment Company Institute (ICI) isn't going to throw in the towel after losing round one to the regulators.

The ICI and the U.S. Chamber of Commerce announced today that they have filed an appeal in their suit challenging a rule that would require mutual funds that trade in commodities futures to register with the Commodities Futures Trading Commission (CFTC). A U.S. district court judge threw out their challenge earlier this month.

The case will now head to the U.S Court of Appeals for the D.C. circuit.

"We believe the District Court decision is deeply flawed and will clearly harm the many shareholders of registered funds that will bear the cost of overlapping regulation by two agencies," said ICI president Paul Schott Stevens in a statement.

The CTFC's proposed rule would require funds that trade commodities futures to disclose counterparty risk and leverage to the regulatory body. The ICI and the Chamber of Commerce argued that this regulation is unnecessary because the funds are already overseen by the SEC.

In a 93-page opinion dismissing the ICI's challenge to the rule, the district court judge ruled that the CFTC had acted appropriately in instituting the rule. The case was heard in October, with Eugene Scalia, the son of Supreme Court Justice Antonin Scalia, arguing the ICI's side.

The news of the ICI's appeal was also covered in the Wall Street Journal. 

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