Commodities push threatened by rules
Article noting the link between higher commodity prices and the political push in the U.S. to impose position limits to mitigate those prices. The article quotes Tom LaSala, chief regulatory officer at the Chicago Mercantile Exchange, as stating that the CFTC proposal represented a step in the wrong direction: "Position limits do have a place - CME Group employs position limits in its agricultural commodities, as well as a combination of position limits and position accountability standards in its energy and metals contracts.
"Rather than hard limits, we believe exchange-position accountability rules are the most effective and appropriate tool for addressing any concerns, with respect to large positions in a contract prior to the expiration period."
Publication
Financial News
Date
January 24, 2011
Cross References (links may require a Cabinet subscription)
Dodd-Frank Act, Title VII, Sec. 737