Commodity position limits have been a thorny issue for US regulators, so its refreshing for a vocal member of the CFTC to advocate further study in an attempt to shed light on gigantic but murky field.
U.S. futures market regulators should review the sharp drop in crude oil prices to gain a better understanding of the slide as they pursue rules to crack down on speculation in commodities, a top official said on Monday. The Commodity Futures Trading Commission is considering regulations to rein in speculation in energy, grain and metals markets with new rules on position limits. However, the agency needs more data...Commissioner Christopher Giancarlo told a commodities conference in Miami. A review of oil's decline could help determine what is driving market moves, he added. Oil prices have fallen almost 60 percent since June The lack of CFTC data on speculation is an issue "of fundamental significance" to any decision to adopt final regulations on position limits, Giancarlo said. The only CFTC analysis cited in the position limits proposal was generated three decades ago.