By Peter Schroeder - 11/15/12 09:39 PM EST
The rules would have set limits on the amount of positions a particular trader could hold in 28 different commodities. Two industry trade groups, the Securities Industry and Financial Markets Association (SIFMA) and International Swaps And Derivatives Association (ISDA), filed the legal challenge that led to the rules being vacated.
Judge Robert Wilkins said the CFTC failed to determine if the new regulations were necessary and appropriate before going forward, and punted the rulemaking back to the regulator. The decision marked a last-minute victory for the financial industry, as the limits were set to begin on Oct. 12.