A divided CFTC has denied a request from Wall Street to delay implementation of the new position limits rule.  SIFMA and the ISDA had asked the commission to stay the enforcement of the position limits on speculative commodities trading while the groups pursued a legal challenge of the new rule. In the lawsuit, the two lobbying groups accused the agency of failing to adequately assess the economic effects of the rule. They also noted that Dodd-Frank left it to regulators to enforce position limits “as appropriate,” arguing that, in essence, no limits were appropriate. CFTC's Bart Chilton has called this argument as “trying to dance on the head of a legal pin.” The rule’s supporters say it will help protect consumers from speculative commodities trading. While the financial industry has increased its speculation in the futures market over the last few years, the prices of the underlying commodities have fluctuated wildly. In turn, energy costs and food prices have risen, pinching consumers at the gas pump and the grocery store. The commission’s 3-2 decision split along party lines, with its three Democratic members voting to reject the request for a stay and the Republican commissioners supporting the delay. The commission was likewise divided in October, when it adopted the so-called position limits rule, which would cap the number of contracts a trader can hold on 28 commodities, including oil and gas. The commission’s adoption of the position-limits rule, which is expected to take effect in part later this year, was seen as a crucial step in the Obama administration’s effort to enforce the Dodd-Frank overhaul, the regulatory crackdown passed in response to the financial crisis. A spokesman for SIFMA said the decision would not impact the group’s broader legal challenge to the rule.   [CFTC 1/4/12]