After a number of false starts, the Commodity Futures Trading Commission finally voted on the long anticipated issued of position limits on 18 October, 2011.
In a split vote along party lines, the three Democratic
members voted to impose new limits on speculation in the
commodity markets, approving the rule over their two Republican
Despite this decision, many industry analysts are still
unsure about how it will be assessed through the lens of
history. Some believe the question remains as to whether
position limits were necessary in the first place, whether they
will actually address the problem they are intended to address
and whether, now that they are set to be put in place, the
details under which they will be implemented, will make them
Industry group spokesman, John Damgard, president of the
Futures Industry Association, was quick to put out a statement
disagreeing with the decision. CFTC Commission Michael Dunn
likened position limits as a cure for a disease that does not
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