Courts Find Cost of Rules Needs More Attention

Last week’s decision by a federal judge to block the U.S. Commodity Futures Trading Commission’s speculation limits rule is the latest example of the key role that cost-benefit analyses have played in post-crisis regulatory proposals.

U.S. District Court Judge Robert Wilkins ruled that it was not “plain and clear” that the Dodd-Frank Act allowed the CFTC to adopt limits without first studying whether they were “necessary and appropriate” after the International Swaps and Derivatives Association (ISDA) and the Securities Industry and Financial Markets Association (Sifma) sued the agency regarding its position limits rule.

Industry groups and congressional lawmakers have criticized the CFTC and other regulators for not looking closely at the potential costs and benefits of certain rules, especially those related to the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Read more>>

Bloomberg BRIEF Newsletters