Wednesday, 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 January 17, 2011 deadline for the Commodities Futures Trading Commission to announce the proposed rule for position limits and many have recently expressed concerns about the Commission meeting this deadline.
Committee Chairman Leonard Boswell, D-Iowa, noted the 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. According to the chairman 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.
Ranking Member Jerry Moran, R-Kan., says the hearing was an important step in letting members of Congress and members of the public voice their opinions as this process moves forward.