SIFMA and ISDA Petition for Review Filed in the U.S. Court of Appeals for the D.C. Circuit on CFTC’s Rule on Position Limits


SIFMA, together with the International Swaps and Derivatives Association, Inc. (ISDA), filed a legal challenge to the Commodity Futures Trading Commission’s (CFTC) final rules that limit the positions that investors may own in certain commodities. The associations believe that the Position Limits Rule may adversely impact commodities markets and market participants, including end-users, by reducing liquidity and increasing price volatility.  In addition, the Associations contend that the CFTC’s decision-making process in enacting the Rule was procedurally flawed.

While the associations strongly support financial regulatory reform that reduces systemic risks and helps to create a more robust and transparent global financial system, unfortunately, the Position Limits Rule as adopted by the CFTC was poorly crafted based on an incorrect reading of the law, and absent any sound economic or cost benefit analysis.  It has the potential to harm markets at a time when they can least afford it.

For more information, visit’s SIFMA Issue Area on Position Limits 

Related filing:
Complaint filed in the U.S. District Court for the District of Columbia.