On September 28, 2012, the U.S. District Court for the District of Columbia vacated and remanded back to the CFTC, the CFTC’s Position Limits Rule, which was set to take effect on October 12, 2012. The CFTC adopted the rule in November 2011 pursuant to the provisions of Dodd-Frank in an effort to place restrictions on speculative trading by setting position limits on derivatives tied to 28 physical commodities such as energy products like oil. Previously adopted restrictions, such as position limits covering agricultural commodities, will stay in effect. The court granted a motion for summary judgment in favor of the plaintiffs, the International Swaps and Derivatives Association and the Securities Industry and Financial Markets Association, finding that the CFTC did not make a showing that it found position limits were “necessary” and “appropriate” to “diminish, eliminate, or prevent” the burden of excessive speculation on interstate commerce as described in Section 6a(a)(1) of the Commodity Exchange Act. The court further went on to state that Dodd-Frank “clearly” and “unambiguously” required the CFTC to conclude that the position limits were necessary before imposing them. The CFTC must now decide whether to redraft the Position Limits Rule or seek an appeal. In its decision, the court declined to opine on the aggregation provisions of the Position Limits Rule. Because the entire rule will be vacated, the CFTC may modify and finalize aggregation rules on remand.