US CFTC withdraws energy limits, plans new rule

* Wall St law mandates broader rule for all commodities

* New rule to build on issues in energy rule comments

* Deadlines: 180 days for energy, metals; 270 days for ags

WASHINGTON, Aug 17 (BestGrowthStock) – The U.S. Commodity Futures
Trading Commission said on Tuesday it has formally withdrawn
its proposed rule on energy position limits as it prepares to
issue broader curbs on speculation for all commodities,
including energy.

The Wall Street reform law passed last month mandates the
broader limits, and CFTC Chairman Gary Gensler said last week
that the agency would withdraw its first proposal.
[ID:nN11232451]

The energy limits, proposed in January, responded to
complaints from energy consumers about the role of speculators
in energy prices, which hit record highs in 2008 — but the
rules were panned by traders, who said they would push volumes
to offshore markets beyond the CFTC’s reach.

In a federal register notice, the CFTC said it planned to
“publish a notice of rulemaking proposing Commission-set
position limits and exemptions” and “intends to take account of
the energy proposal and build on the substantive issues raised
by the commenters.” (http://r.reuters.com/vyk55n)

The new law directs the CFTC to set limits for energy and
metals contracts within 180 days, and agricultural contracts
within 270 days, and requires aggregate limits across futures
and swaps markets.
(Reporting by Roberta Rampton; Editing by Walter Bagley)

US CFTC withdraws energy limits, plans new rule