Congressman Edward J. Markey (D-Mass.), top Democrat on the Natural Resources Committee, released the following statement after the District of Columbia district court issued a decision vacating the Commodities Futures Trading Commission (CFTC) position limits rule. Rep. Markey has been a leading Congressional champion for full funding for the CFTC, who monitor, regulate and help prosecute speculative manipulation. The CFTC is charged with implementing the financial reforms passed by the Democratic Congress in the Dodd-Frank legislation. That legislation included the requirement that the CFTC implement "position limits" which would restrict the number of commodities contracts, like oil futures, held by Wall Street trading firms. Increased concentration of those contracts can mean certain firms can have an outsized impact on the marketplace.
"I'm appalled by today's D.C. District Court decision vacating the CFTC's position limits rule. The decision is wrong on the law, wrong on the facts, and wrong for the economy. Contrary to the court's editorializing, we in Congress explicitly mandated that the Commission enact a rule that would set position limits for our nation's commodities markets. Position limits are the key to ensuring that Wall Street gasoline gamblers can no longer dominate our oil markets, and it's terrible that this decision is coming out just two weeks before the position limits would have gone into effect.
"I urge Chairman Gensler and the CFTC to appeal this absurd decision to the D.C. Circuit Court of Appeals. We can't afford to let Wall Street speculators continue to dictate the price of oil, natural gas, and other key commodities."