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FCMs in last ditch fight against energy position limits
29 April 2010
Several leading Wall Street firms have written to the Commodity Futures Trading Commission, urging it not to go ahead with plans to set position limits for speculative energy futures trading.
Read more:
[position limits]
[energy]
[trading]
[speculation]
[hedging]
[commodities]
[CFTC]
[Commodity Futures Trading Commission]
[Gary Gensler]
Several leading Wall Street firms have written to the Commodity Futures Trading Commission, urging it not to go ahead with plans to set position limits for speculative energy futures trading.
The letters follow a similar objection by the CME Group, a long time opponent of the plan, all of which have been received just days before the watchdog closes its door to any more comment. The 90 day comment period runs out at the end of April.
In January the CFTC, led by chairman Gary Gensler, set out plans to impose position limits for trading futures on light sweet crude oil, Henry Hub natural gas, New York Harbor No 2 heating oil and New York Harbor gasoline blendstock.
The proposal contains exemptions for “bona fide hedging” and for “certain swap dealer risk management transactions”. Limits would relate to the size of the market and would be “administratively reset” annually.
Leading...
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