Tuesday, September 27, 2011

Position Limits Oct 18th. Delayed again. Most likely will be delayed on Oct 13, for another 34 years or until JPM has covered.

I'm with Pete on this one LOL. I have given up on this.

Federal rules set to rein in speculative commodities trading face further delays, as regulators struggle to finalize the controversial proposal amid threats of legal challenges.
The Commodity Futures Trading Commission decided on Tuesday to push back an Oct. 4 meeting during which the agency had been scheduled to vote on the rules. The commission’s chairman, Gary Gensler, is expected to notify his fellow commissioners that the agency is likely to take up the proposal on Oct. 18.
Bart Chilton, a Democratic member of the agency and a devoted supporter of the so-called position limits plan, lamented the delay. “I continue to be troubled by the pace of implementing position limits as Congress has directed,” he said.
The agency, which must enact some 50 new rules under the Dodd-Frank financial regulatory overhaul, has struggled to keep pace. It already announced plans to push some rules into 2012 — a delay of more than six months.
The agency’s decision on Tuesday was the latest in a long line of setbacks for the position limits plan. Under the Dodd-Frank Act, the limits were supposed to kick in during January. Then the commission planned to vote on the proposal in September, but delayed it to further to bolster the cost-benefit section of the rule.
“I want to be sensitive to the costs,” Scott O’Malia, a Republican member of the commission, said recently.
The position limits would cap the amount of futures contracts that a single trader or firm can hold on 28 commodities like oil, wheat and corn, a response to wild price fluctuations that can hurt consumers at the gas pump and in the supermarket. Existing limits apply to only nine items.
The proposal has emerged as one of the most contentious matters stemming from Dodd-Frank. The regulator received a barrage of letters about its plan, some 13,000 comments in total, some from supporters like Senator Carl Levin, Democrat of Michigan, who wrote that the plan was a “critical step to stop excessive speculation.”
But many responses came from unhappy Wall Street trade groups. Some industry lobbyists and lawyers note that Dodd-Frank leaves it up to the agency to enforce position limits only “as appropriate,” raising the question of whether limits are at all in fact necessary.
Other groups have even issued thinly veiled threats of legal action. In March, for instance, the Futures Industry Association urged the commission to scrap its position limits plan, saying it “may be legally infirm.”
The threats have resonated at the agency in the wake of a recent court ruling that struck down another Dodd-Frank rule. In July, the United States Court of Appeals for the District of Columbia Circuit rejected the so-called proxy access rule by the Securities and Exchange Commission, rebuking that agency for not fully evaluating the rule’s economic effects.


  1. Noone should be surprised. I know I am not.

  2. Other groups have even issued thinly veiled threats of legal action. In March, for instance, the Futures Industry Association urged the commission to scrap its position limits plan, saying it “may be legally infirm.”

    Oh yeah so is market manipulation and outright fraud "legally infirm" as well.

    What a fucking joke, funny how the crooks on Wall St start crying when things look like not going their way.

    We can all see this being delayed constantly and watered down over time so the Wall St arseholes can position themselves to continue the fraud.

    But like they say "desperate times call for desperate measures" and with bullshit over the past week, I sense they are getting a little desperate.

  3. Seems to me that even if they had position limits in place they could just create a hundred offshore corporations (SIVs etc) and divide up their trading amongst them. No single entity would own in excess of the limits.


  5. Institute a 5% sales tax on every sale of every PM contract NO exceptions and that action alone would end the whole non-sense. No worry over position limit because banks would not short if they were required to put up 5% of the sale on every naked contract. No one would be selling back naked to the bank & there goes the racket in a 1 sentence rule, PERIOD.

  6. Let's declare the CFTC irrelevant and move on. Their timeline is obviously not of their own making. Their Wall Street overlords apparently have some unfinished business to clear up. This thing is going to crash and burn with the CFTC asleep at the wheel just as the script calls for. The timeline for the false flag/'natural disaster' must've been pushed back due to the heightened awareness. Maybe they haven't got enough pop tarts for the bunker yet and need more time...

  7. I'm so surprised.

    I thought sure our government would stop the manipulation of precious metals.

  8. TIME to SHORT Silver! This goes to show you all who really is in control. Banks/Corps OWN govt. I guarantee at lease another 30% plunge from here...

  9. @Robert

    I really hope you are right I would love to back up the truck and reduce the dollar cost average of my phyzz.

  10. Hmm, miss the last dip, would welcome 30% drop to get some more.

  11. If silver prices dip again, it will be because of its sensitivity to "risk".

    Gold has held up far better. Many market watchers have expected gold to correct to the 150dma, which it has but it has not closed below that. Very healthy.

    Silver fell under its 300dma ominously. However, if silver can survive this week by closing back above the 300dma, then a bottom will be in. Because once the metals reverse up above the 300dma on the weekly, they never go back again.

  12. Even if it DOES dip below and close below the 300dma .. demand has not dried up. Lower silver prices will spur greater demand .. those that bought in the $40's may be unwilling to selling in the teens so you have hoarders waiting for price elevation to break even, and you have buyers grabbing with two fists... eventually fundamentals (read reality) catches up. You can sit in the middle of a burning house for a while but eventually the fire will get to you.

  13. http://youtu.be/aC19fEqR5bA

    "Goldman Sachs rules the world"

  14. Robert said: "TIME to SHORT Silver!"

    I've never bought commodities before from commodities exchange so could someone tell me how to short silver or commodities for that matter? Do you short commodities through company stocks or ETF's? Or do you sell commodity contract from the commodity exchange?

  15. Buy PUTS on the SLV. I bought some $20 Jan 2012 PUTS. Working wonderfly. I see at least another knock down to the $23/24 level on silver and then I am out!!! You can also buy the ZSLs.