This time the attacks are actually coming from the CFTC, as new Chairman Gary Gensler announced that the agency would consider imposing position limits in the energy markets. It’s part of a larger regultory overhaul by the Obama Administration that has heated up over the past few months and includes the proposal for regulatory reform released in mid-June. It’ll be interesting to see how this latest round of regulatory wrangling is covered by the mainstream media, and how it shakes up the futures industry. We’ll have the latest reaction to recent regulatory developments in the August issue of Futures magazine, online July 23.

The proposal received mostly a chorus of praise from the industry. CME Group called it “a significant step towards restoring confidence in the integrity of financial markets.” International Swaps and Derivatives Association CEO Robert Pickel said in a statement that it “provide[s] an important framework for financial regulatory reform.” In his statement, Futures Industry AssociationPresident John Damgard “commend[ed] the administration for the thoughtfulness and comprehensiveness of its plan.” In a statement, Chicago Board Options Exchange ChairmanBill Brodsky said, “We are particularly pleased that the plan recognizes the need for greater coordination and harmonization of the SEC and CFTC,  including streamlining the approval of new products and rule filings.” But not everyone is singing the proposal’s praises.

The “harmonization” of regulatory agencies is one of the elements that could impact the futures industry the most. Specifically, the plan calls for the CFTC and SECto make recommendations to Congress on how to eliminate differences “with respect to similar types of financial instruments that are not essential to achieving investor protection.” The two agencies must complete a report with recommendations by Sept. 30. If they don’t the matter will be forwarded to the soon-to-be created Financial Services Oversight Council. Some are concerned that the creation of additional agencies will not solve the regulatory problems that exist in the financial system. “In the proposal, there are not one, not two, but three proposed coordinating committees [including] the Financial Services Oversight Council. The better solution would have been to get rid of all of those agencies that require coordiation and consolidate them somehow,” says Gary DeWaal, general counsel of Newedge. “It’s more of the same. The Obama Administration has other priorities and they don’t want to use political capital to make real effective change in the financial services industry,” he adds.

House Agriculture Committee Chairman Collin Peterson isn’t a huge fan of the proposal either. In a statement, Peterson said he was “concerned about proposals to expand the authority and responsibility of the Federal Reserve, a secretive and unaccountable institution.”

Peterson did, however, applaud the proposal’s reforms for over the counter (OTC) derivatives regulation, including credit default swaps, the proposal’s other big takeaway impacting the futures industry. The proposal requires standardized OTC derivatives to be centrally cleared and executed on exchanges and requires transparency for all OTC trades and positions through recordkeeping and reporting requirements, as called for by Treasury Secretary Timothy Geithner in an earlier OTC reform proposal.

President Barack Obama in his inaugural address today spoke of the economic dilemmas he’s inheriting. Here are some highlights:

“The state of our economy calls for action: bold and swift.” 

“This crisis has reminded us that without a watchful eye, the market can spin out of control. The nation cannot prosper long when it favors only the prosperous.”

“Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some but also our collective failure to make hard choices and prepare the nation for a new age.”

The swearing in of Obama also comes with leadership change at the Commodity Futures Trading Commission (CFTC). Commissioner Michael Dunn was named acting chairman until Obama’s choice for CFTC chair, Gary Gensler, is confirmed by the Senate.