Commodities experts have rallied against a plan by the US
derivatives watchdog to limit speculative positions on
commodities, arguing the rules would harm legitimate end users
who use the products to hedge.
The US Commodity Futures Trading Commission (CFTC) hosted a
public roundtable on Thursday comprising all five members of
the agency, including the new chairman Timothy Massad.
But experts at the roundtable argued that the commission
does not understand the complexity of physical commodity
hedging, and called for a hedging exemption for corporates and
end-users to allow them to manage their risk effectively, free
from unnecessary regulation.
"A hedge has to...