CFTC's New Mutual Fund Rule Survives Challenge

Law360, New York (December 12, 2012, 8:56 PM EST) -- A Washington federal judge ruled Wednesday that the U.S. Commodity Futures Trading Commission's new rule requiring mutual funds to register with the agency can stand, tossing two business groups' challenge to the regulation.

U.S. District Judge Beryl Howell said that the CFTC fulfilled its case responsibilities under both the Commodity Exchange Act and the Administrative Procedures Act to evaluate the costs and benefits of its final rule of mandating that mutual funds register as commodity pool operators.

“Whether the benefits of the final rule outweigh its...
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