New CFTC chairman Timothy Massad brought a controversial position limits rule back to the stage last week, convening a group of agriculture market participants to restart discussions on a rule that sparked industry litigation only two years ago. Market participants say Massad is unhappy with several aspects of the current proposal -which was scheduled to have a comment period close last week but was extended until mid-January - including specifically the definition of "bona fide hedging". That definition will determine the amount of flexibility producers maintain in terms of considering transactions "hedges" or "speculative positions" under Dodd-Frank. "The ability of the agricultural sector to hedge commercial exposures is critical to having a successful agricultural industry and to putting food on the table for all of us," said Massad at last Tuesday's meeting. "We've ... made it a priority to address areas where our rules may not be working as well as they should," he said. "Our goal is not to create unnecessary burdens on commercial end users but to build a reliable, orderly framework for oversight in which vibrant markets can thrive."
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