This is not the first time that the CFTC has considered the issue of “excessive speculation” and position limits. 
   In the wake of the Hunt Brothers silver scandal, Congress directed the Commission to submit a report on the events in the silver market (see timeline below, reproduced from the CFTC website). 
   The CFTC also considered the broader question of whether “unchecked speculation” could pose a danger to markets.  On that occassion the Commission concluded: 
 
“It appears that the capacity of any contract market to absorb the establishment and liquidation of large speculative positions in an orderly manner is related to the relative size of such positions, i.e., the capacity of the market is not unlimited. Recent events in the silver market would support a finding that the capacity of a liquid futures market to absorb large speculative positions is not unlimited, notwithstanding mitigating characteristics of the underlying cash market.”