The U.S. Commodity Futures Trading Commission, which has yet to complete Dodd-Frank Act limits on excessive speculation, will face scrutiny about the trading curbs at an Oct. 6 hearing led by Senator Carl Levin.
CFTC chairman Gary Gensler will testify at the hearing of the Permanent Subcommittee on Investigations, according to a statement released by Levin’s office today.
The CFTC, after delaying consideration in September, delayed a final vote on the regulations until an Oct. 18 Washington meeting, Steve Adamske, the agency’s spokesman, said yesterday. The rule has among the most contentious stemming from Dodd-Frank, spurring more than 13,000 comments from supporters such as Delta Air Lines Inc. and opponents including Barclays Capital.
The agency has come under pressure from lawmakers, including Levin, a Michigan Democrat, and Senators Maria Cantwell, a Washington Democrat, Bernie Sanders, a Vermont independent, and Bill Nelson, a Florida Democrat, to complete the speculation rule, originally proposed in January.
“Until this proposed rule is adopted and effective position limits are put in place, the American economy will continue to be vulnerable to excessive speculation and the violent price swings it can cause, and American business and consumers will continue to be at risk,” Levin said in a March 28 letter to the CFTC.
The CFTC and Securities and Exchange Commission are leading U.S. efforts to write new derivatives rules for the $601 trillion global swaps market after largely unregulated trades helped fuel the 2008 credit crisis. The rules will govern trades conducted by Goldman Sachs Group Inc., Citigroup Inc. and Cargill Inc., among other companies.