Rules on commodity trading position limits put in place by the Commodity Futures Trading Commission (CFTC) were thrown out late last week by a federal judge who ruled they do not reduce speculation in the markets as claimed.

Position limits have been in place for certain agricultural commodities such as wheat for some time, but the Dodd-Frank regulation reform law mandated that position limits include other commodities, such as gold and natural gas.

The new limits, which were added to the Commodity Exchange Act, would only apply if they were found to reduce excessive speculation in the marketplace, which the district judge ruled that CFTC has not clearly proven.

CFTC is reportedly examining administrative and legal options to reinstate the position limits.