CFTC’s Chilton Proposes Position Tracking, but Not Hard Limit on Commodities
CFTC Commissioner Bart Chilton said he would move forward with an interim plan for imposing position limits that would establish a "points" system to track trading positions in goods like oil and metals, but would hold off on strict position limits while the five-member body considers new rules for those markets. Previously, Mr. Chilton has advocated establishing limits on those traders immediately in order to curb "excessive speculation."
The "points" system Mr. Chilton is supporting would give the CFTC monthly reports that it could use to red-flag traders with large positions. But it wouldn't place a hard cap on the supply of a single commodity that one trader could hold, as the CFTC is empowered to do under the Dodd-Frank financial law. Under the interim proposal, "we could do nothing, or we could urge the trader to reduce trading positions," Mr. Chilton said in a statement. In addition, the CFTC has "other authorities" that could be used with an "affirmative vote," he added.
Publication
Wall Street Journal
Date
January 5, 2011
Cross References (links require a Cabinet subscription)
Dodd-Frank Act, Title VII, Sec. 737