Drums along the Potomac on Position Limits Roundtable (Article in Energy Metro Desk)
Linked below is the latest article in the Energy Metro Desk series, "Drums Along the Potomac," which analyzes the recent CFTC staff roundtable on position limits.
The article reviews the discussion at the roundtable, noting that the position limits issue is at a crossroads, where the CFTC "is concerned that speculation is being done in the name of hedging, and industry is concerned that hedging will be compromised in the name of curbing speculation."
According to the article, most people attending the meeting "seemed to agree that hard-and-fast position limit rules will likely reduce liquidity in the marketplace, increase risk, and eventually increase prices for consumers."
Click here to view the article. The above link is to an excerpt from the most recent issue of Energy Metro Desk, which is published biweekly by Scudder Publishing Group, an energy trade news publishing company based in the Washington, D.C. metropolitan area. Those interested in learning more about the Energy Metro Desk may do so by linking to www.energymetro.com or emailing [email protected]. Reprinted with permission of the publisher, Scudder Publishing Group, LLC. Copyright 2014.
Related news: CFTC Further Extends the Comment Period for Proposed Rules on Position Limits and Aggregation (June 27, 2014); CFTC Public Roundtable on Position Limits for Physical Commodity Derivatives (Cadwalader Summary) (June 23, 2014); CFTC Holds Public Roundtable on Position Limits for Physical Commodity Derivatives (with Delta Strategy Group Summary) (June 20, 2014); CFTC Reopens Comment Periods for Position Limits for Derivatives and for Aggregation of Positions (Fed. Reg.) (May 29, 2014); CFTC Announces Three Actions to Clean up Problems with Swaps Regulations (with Lofchie Comment) (CFTC Letter 14-72) (May 22, 2014); CFTC Issues Proposed Position Limits Rule (Fed. Reg.) (December 12, 2013); CFTC Issues Proposed Position Limits Rule for Derivatives (Pre-Fed. Reg.) (with Zwirb Comment) (December 3, 2013); CFTC Publishes Proposed Rules for Aggregation of Positions (Fed. Reg. Version) (November 15, 2013) Key Differences between the Recent CFTC Position Limits Proposal and the Previously Vacated Final Position Limits Rule (with Delta Strategy Group Summary) (November 18, 2013); Cadwalader Memo on Proposed Position Limits and Aggregation Rules (with Lofchie Comment) (November 6, 2013); CFTC Approves Position Limits Proposal (with Lofchie and Zwirb Comments and Delta Strategy Group Summary) (November 5, 2013).