(Reuters) – The Commodity Futures Trading Commission is set to approve the request from CME Group 's to increase the grain boundaries in a position to 85 percent in a draft final rule for the debate on trade curbs.
A September 19 draft regulation CFTC 's final on the highest position limits obtained by Reuters says that "the Commission has decided to adopt the position limit levels proposed by the CME Group."
A vote in the state is tentatively scheduled for October 4. If approved, could take effect 60 days later.
CME in April 2010 proposed an increase in trading limits for their contracts in agriculture – the threshold levels that had been in place for years – since an increase in trading volume and open interest. But the plan CFTC 's broader limits apply to all future contracts complicated application.
The decision supports the argument for raising the limits given the influx of money from Wall Street in commodities in recent years, keeping them at bay with the recently proposed limits for other commodities such as energy – while rejecting concerns groups of farmers and commercial users such as bakeries that coverage will become too dangerous and costly.
Agricultural markets have been subjected to the kind of covers federal position that has not been applied to the energy and metals markets. The rules governing how banks apply will be replaced by the new rules after 60 days of the CFTC defines the word "swap".
The new set of rules, among other things, unlike the existing policy on contract farming, as it includes swaps positions, press coverage exemptions and allows adjustment regular margin on the basis of open positions rather than based on an exchange requests' s specific.
The 238-page document may be subject to change, especially because the five-member commission and its staff have been divided on how to create the rule.
The regulation is part of a broader effort by the agency to review the $ 600 billion in OTC swaps market in the Dodd-Frank sweeping financial legislation enacted in July 2010.
The final rule maintains the Dodd-Frank Wall Street reform limits required by commodity position – the limits on the number of contracts of any trader has to
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