Commodity Futures Trading Commission (CFTC) Considers Limits on Energy Trading Positions
Reuters, Washington D.C. - The chief regulator of U.S. commodities markets, Gary Gensler, is serious about limiting speculation in energy futures trading and will move to provide details about managed funds’ contract positions in an attempt to make markets more transparent.
The chairman of the Commodity Futures Trading Commission unveiled a broad vision in a Reuters interview of gaining transparency in the once high flying markets, including using new authority to tighten oversight over futures contracts on exempt markets.
“I think, as chairman, we have to seriously consider” position limits, he said. “Position limits help protect the markets from highly concentrated positions that can be distorting in difficult periods,” he said.
Gensler, the former Goldman Sachs executive charged with overhauling the volatile commodity trading world, held up agriculture regulation as a model for energy trading where prices have whipsawed over the past several months.
“The principal reasons we do it in agriculture is relevant for energy and it’s to promote market integrity, to promote markets that are fair and orderly and have the liquidity in them by having a minimum number of participants,” Gensler said.
Click Here to Continue Reading
Popularity: 1%
Tags: CFTC
