Tuesday, July 28, 2009

CFTC poised to move aggressively on Energy position limits

Reuters reports:
The Commodity Futures Trading Commission will consider "every option" to clampdown on excessive speculation in energy markets, the head of the agency said on Tuesday.

The CFTC, the regulator of U.S. futures markets, is reviewing how to exert its power to limit how many futures contracts can he held, so-called position limits, and also if some traders should be allowed to exceed those limits.
Maybe, increasing the supply of energy would help things more than restricting markets.