The Commodity Futures Trading Commission made clear today that it intends to follow through on its promises to strictly enforce speculative position limits in futures markets. The agency withdrew two no-action letters that provided relief from position limits on corn, soybean and wheat contracts. The no-action letters, both from 2006, allowed a unit of Deutsche Bank, DB Commodity Services (through its DB Commodity Index Tracking Master Fund), and an unnamed  CPO/CTA  to take positions that exceeded federal speculative position limits. A person familiar with the matter says this is the first time a no-action letter had been withdrawn from DB. And a CFTC spokesperson told the Financial Times that this was the first time the commission has revoked a position limit exemption.

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