CFTC proposes stringent commodity limits

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investorzzo's picture
investorzzo
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CFTC proposes stringent commodity limits

WASHINGTON (MarketWatch) -- Seeking to combat manipulation and speculation, the Commodity Futures Trading Commission on Thursday voted to propose a rule that would restrict the number of commodity futures and option contracts that any investor can hold in energy, agriculture or metals derivatives. "Position limits help to protect the markets both in times of clear skies and when there is a storm on the horizon," said CFTC Chairman Gary Gensler. The proposal was introduced by a vote of 4-to-1.

 

investorzzo's picture
investorzzo
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Re: CFTC proposes stringent commodity limits

What's behind it, maybe not silver so much as inflation across the board.

http://finance.yahoo.com/news/Higher-commodity-prices-may-apf-2101206139...

SteveW's picture
SteveW
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castiel wrote: As part of
castiel wrote:

As part of the proposal, large financial institutions can apply for a “bona fide hedging exemption,” which would allow them to hedge on behalf of corporate end users such without counting that investment against their limit.

And I'm sure those financial institutions would make their books available to ensure compliance. Surprised

r101958's picture
r101958
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It is another attempt to

It is another attempt to control upside price pressure but not downside. Same thing with the rules about short selling equities. In other words, more manipulation and extend and pretend.

r101958's picture
r101958
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Posts: 257
Sorry, meant to add this to

Sorry, meant to add this to the part about equity controls...'These rules are meant to do the opposite of the commodities controls (control downward price pressures).

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