Traders’ Oil Bets Get New Federal Limits Under CFTC Regulation

The Commodity Futures Trading Commission is imposing long-delayed federal limits on the size of speculative bets that hedge funds and other financial firms can make in futures contracts tied to key commodities such as oil and metals.

The measure passed by the CFTC in a 3-2 vote on Thursday comes after the main U.S. derivatives regulator failed several times in the past decade to impose more restrictive rules. Key industry groups backed the position limits plan after fighting versions developed during President Barack Obama’s administration.

Republican commissioners hailed the new approach as a responsible way to prevent excessive speculation ...