The House Agriculture Subcommittee on General Farm Commodities and Risk Management held a hearing to review implementation of the position limits provision within the Wall Street Reform and Consumer Protection Act.
The law sets a Jan. 17, deadline for the Commodities Futures Trading Commission to announce the proposed rule for position limits and many have recently expressed concerns about the CFTC meeting this deadline.
"Today's hearing was important to make sure that key position limits outlined in the Dodd-Frank Wall Street Reform and Consumer Protection Act are implemented during the rulemaking process," said Chairman Leonard Boswell (D-Iowa). "Position limits are essential to the function of effective and efficient markets, and necessary to protect market end users who rely on the marketplace to hedge their risks in operating their businesses."
"The hearing was useful to gain perspective about how CFTC is implementing the Dodd-Frank Act. I hope it allowed CFTC to learn that concern exists about whether sufficient information is available to allow the commission to proceed with setting position limits. It is important the committee has adequate information before making any further decisions and the hearing was an important step in letting members of Congress and members of the public voice their opinions as this process moves forward," said Ranking Member Jerry Moran (R-Kan.).
Written testimony provided by the witnesses is available on the committee Web site.
Source: U.S. House Agricutlure Subcommittee