With the CFTC set to vote on a final rule imposing position limits in commodity markets, the battle between the commission and its critics is set to move across Washington to the federal courthouse on Constitution Avenue. The commission has scheduled an open meeting on Oct. 18 to adopt a final rule on position limits for futures and swaps. The vote would not have been arranged if the chairman was not confident he had the necessary three votes out of five to press ahead. So it seems Chairman Gary Gensler has secured the extra vote he needs on top of his own and Commissioner Bart Chilton. Once the vote is taken, the commission is likely to face an immediate legal challenge from the industry. It will be heard by the U.S. Court of Appeals for the District of Columbia Circuit where the commission's proposals will receive tough scrutiny from a panel likely dominated by pro-business judges appointed by Presidents Ronald Reagan and George W. Bush. The D.C. Circuit is arguably the second-most powerful court in the country, after the U.S. Supreme Court, with jurisdiction over rule-making by the independent agencies such as the CFTC. It has jurisdiction over much of the regulatory agenda and has not always supported broad based economic regulation. The expected challenge to the CFTC will therefore set up a major clash between the Obama administration, regulators and the congressional Democratic Party on the one hand (all of who want to impose tougher restrictions on trading and banking in the wake of the crisis) and Wall Street and congressional Republicans (who oppose attempts to extend regulation as misguided and damaging). [Reuters, 10/17/11]