Final rule protects dairy traders

The Commodity Futures Trading Commission has eased concerns about position limits for futures and swaps in its proposed rule.  As originally proposed, the rule would have limited legitimate hedging of milk and other dairy commodities, as its narrow definition of hedging would have labeled as speculative some common trading practices in dairy and other commodities. The final rule, however, broadens the definition of hedging to bona fide commodity traders and offers an exemption on position limits. The rule is one of many that CFTC is writing under the Dodd-Frank legislation. National Milk Producers Federation was one of the ag organizations working with CFTC staff to help them understand ag trading. <more> Nov. 15,2011 Capital Press