The CFTC has postponed another meeting, pushing back a final vote on position limits until October 18th. The Commission was scheduled to meet on September 22nd, and then again on October 4th, to finalize a Dodd-Frank rule-making, but in recent weeks signs of internal strife have leaked into the public eye.
Creating position limits has always been one of more contentious tasks given to the CFTC by the Dodd-Frank Act. When a draft of the rule was proposed in January, the CFTC was flooded with thousands of comments. However, the process took a dramatic turn two weeks ago, when two anonymous CFTC staff members sent anonymous “whistle-blower” complaints to the agency’s Inspector General. Both complaints contend that the rulemaking team is stocked with inexperienced staff members, allowing the team leader to gut the rule of any meaningful provisions.
Furthermore, one of the whistle-blowers alleges that the rule currently relies on a type of OTC data that the CFTC is not authorized to collect by the large swaps trader reporting requirement passed earlier this year. This delay suggests that the Commission is taking the time to review the rule, and perhaps to correct the data collection mismatch.