It was big news in July when an appellate panel struck down the Dodd-Frank requirement that companies comply with new proxy access rules. The reasoning was even more interesting.

The judges struck down the provision because, in their mind, the SEC did not conduct an adequate cost benefit analysis. At the time, we suggested that the decision would spark a rash of similar challenges to other aspects of the law based on the same premise. And sure enough, The Securities Industry and Financial Markets Association (Sifma) and the International Swaps and Derivatives Association (ISDA) have filed a legal challenge to the Commodity Futures Trading Commission's new position limit rules. The agency adopted the rule in October to limit the number of contracts a trader can hold on 28 commodities and the measure was intended to reduce risk throughout the system.

In its suit, the two groups argue that the CFTC did not adequately consider the economic impact on the industry. If the appellate panel agrees, then we may see a radical move by the many opponents of Dodd-Frank and other regulations ramp up their efforts along these lines. Some groups are already pondering their options. One example would be opponents of the new Form PF, which is considered too onerous by some hedge fund groups. We fully expect other challenges based on the cost benefit analysis argument.

For more:
- here's a Dealbook article on the news

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