* CFTC's Wetjen supports appealing ruling against limits
* Two other commissioners previously supported an appeal
* Next step is to formalize decision on appeal-Wetjen
CHICAGO, Nov 1 A majority of the Commodity
Futures Trading Commission supports appealing a judge's ruling
against limits on commodity-market speculation, Commissioner
Mark Wetjen said on Thursday.
The five-member commission approved position limits last
year to cut down on excessive speculation in commodity markets.
The rules limit the number of contracts traders can hold in
28-commodities, including oil, coffee and gold.
However, U.S. District Court Judge Robert Wilkins on
September 28 sent the rule back to the CFTC for further
consideration, just two weeks before limits were set to take
effect. He said the Dodd-Frank financial oversight law did not
give the commission a "clear and unambiguous mandate" to set
position limits without showing they were necessary.
"There are three commissioners who have made it known that
they support an appeal and so the next step is to formalize the
decision," Wetjen told reporters on the sidelines of the annual
Futures Industry Association conference in Chicago.
"I've signaled to the chairman I would be willing to support
the appeal," he said.
Commissioner Bart Chilton and CFTC Chairman Gary Gensler
have previously said they would support an
Lawmakers and President Barack Obama have argued that
regulators should be doing more to rein in traders who may be
driving up the price of oil for consumers through speculation.
But Wall Street has argued that regulators have not proven
position limits would curb speculation in markets and prevent
disruptive price spikes.
Critics have said position limits could inadvertently make
markets more volatile, not less, because traders would move
deals to overseas exchanges with looser regulations, reducing
liquidity in U.S. markets.
(Reporting By Tom Polansek; editing by Carol Bishopric)