Top U.S. Derivatives Regulators Approve New Limit on Commodity Trading

CFTC Applies New Limit That Effects Trading Limits on Oil, Wheat, Gold and Other CommoditiesThe Commodity Futures Trading Commission (CFTC) voted 3 to 2 on Tuesday, October 18, 2011, to curb trading after a boom in raw-materials, speculation, record-high prices and years of debate and delay. The rule has been among the most controversial provisions of the Dodd-Frank financial overhaul, which gave the CFTC the authority to limit trading in over-the-counter commodity swaps as well as exchange-traded futures. This new rule will limit the number of contacts a single firm can hold.