* CFTC will formally withdraw energy proposal
* Wall Street law mandates broader position limit rule
* New rule to build on first proposal, plus comments
* CFTC, SEC to hold round-tables on rules starting Aug
WASHINGTON, Aug 11 (Reuters) - The U.S. Commodity Futures Trading Commission will formally withdraw in coming days its proposed position limit rule for energy markets as it prepares to “repropose” new speculative curbs, Chairman Gary Gensler said on Wednesday.
The Wall Street reform law mandates the CFTC to impose position limits for all commodities -- not just energy contracts -- and across both exchange-traded and over-the-counter markets.
“We decided that we’ll need to repropose a rule,” Gensler told reporters. He said the CFTC would not need to start from scratch, but will build on what he described as a “thoughtfully put together” rule, as well as the more than 8,000 comments it received on the proposal earlier this year.
The new law gives the CFTC 180 days to have the new rule in place for energy and metals markets, and 270 days for limits for agricultural markets.
It’s one of 30 areas requiring detailed rules from the CFTC. [ID:nN21183568]
“Our priority is complying with the statute. We don’t have the luxury to triage,” Gensler said. “We have to finish in 12 months.”
Near the top of its list are rules to cover swaps done before the law was in place, and to finalize proposed regulations for retail foreign exchange transactions, he said.
“I would anticipate throughout the fall ... that we would be having a series of proposed rules,” he said.
“Sometimes the ones that will come early in the fall will just be the ones that we happened to have gotten to and they were less complicated or easier. The more difficult ones will probably be a little later,” he said.
The CFTC will also hold open public meetings with the Securities and Exchange Commission to gather ideas on how they should write rules to implement some of the new reforms for derivatives markets, beginning as early as late August.
The meetings will cover rules for data collection, real-time reporting of swaps, and new “swap execution facilities” required under the new law, Gensler said.
The CFTC has encouraged public comment on its rule-making areas through its web site, and plans to solicit more comment from the public through a notice in the public register in the next week, Gensler said.
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