The CFTC’s investigation into accusations that the leader of the group writing position limits rule was removing senior employees from the team and pushing an unworkable rule found the employee committed no wrongdoing, the inspector general said. The complaints underscored the conflict that has undermined the agency’s attempts to implement the Dodd-Frank Act.
The position limits rule, capping the number of contracts a trader can hold in 28 commodities, has been a point of contention for the Commission. Last year’s allegations said that the agency’s team leader for position’s limits acquired his role “sneakily,” and excused senior members in order to bring in more easily manipulated newer members. The sources also asserted that the team leader communicated improperly with outside sources, and wrote an ineffective rule that would be incompatible with another CFTC measure on large swaps trader reporting.
The inspector general’s report said, “We found no evidence to sustain a preliminary finding of wrongdoing by any individual connected with the position limits and large swaps trader reporting rulemakings.”