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MFDF - Mutual Fund Directors Forum - Oral Argument for Appeal of CFTC Rule Decision Scheduled

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Oral Argument for Appeal of CFTC Rule Decision Scheduled

Oral argument in the case challenging a CFTC rule affecting funds has been scheduled by the Court of Appeals for the District of Columbia Circuit for May 6.

In early February 2012 the CFTC issued a controversial rulemaking that requires most funds investing in commodity-related instruments to register with the CFTC. As such, these funds will be subject to dual registration requirements by the CFTC and SEC. The ICI and the Chamber of Commerce challenged the CFTC rulemaking, asking that the rule be vacated because the agency "failed to identify a significant benefit, acknowledged that the rule would impose significant costs, and imposed those costs in a manner that made it impossible to evaluate the full extent of the costs before the rule's adoption."

In December 2012 the U.S. District Court for the District of Columbia issued a ruling rejecting the claims of the ICI and the Chamber of Commerce, stating that the CFTC acted consistently with its governing statute, the Commodity Exchange Act, in considering the costs and benefits of its rule.  The ICI and the Chamber of Commerce appealed the District Court decision.  The Forum has filed two friend of the court briefs supporting the challenge to the CFTC rulemaking.

Additional information, including links to significant documents in the matter are available here.