(Bloomberg) -- Intercontinental Exchange Inc. refused a request to introduce daily price limits on cocoa after futures surged this year, according to people familiar with the matter.

In a meeting with traders, the exchange argued such limits — commonplace in cotton and grain markets — would make it harder to liquidate positions if needed, said the people, who asked not to be identified discussing private talks. Most participants agreed, the people said.

Cocoa prices have more than doubled this year, breaking record after record as output was hit by bad weather and rampant crop disease in West Africa, which accounts for more than half of global supply. Futures in New York recently topped the $12,000-a-ton mark, making the beans more expensive than copper.

ICE received the request for daily limits from one cocoa trader, while another was in favor of the proposal, the people said. Brokers and clearers mostly agreed with the exchange, partly on concern they may be forced to liquidate a client’s position if companies failed or defaulted on their margin calls — the money firms need to put down to back their trades — the people said.

ICE does have so-called interval price limits, which act as a temporary circuit breaker and help temper any spikes. It has also taken steps to keep the market orderly, including reducing the amount of cocoa available for delivery to traders and lowering the level at which they must disclose details about their positions.

Grain futures owned by CME Group Inc. and cotton contracts on ICE are among commodities with daily limits. Some participants argue those restrictions allow the market to cool when prices jump and help traders adjust their finances in case they need to obtain more credit to back margin calls. 

Others say they’re an artificial mechanism that simply delays price moves and makes it harder for companies to get in and out of the market.

ICE declined to comment.

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