CFTC prepares crackdown on speculators By Miles Johnson in London
Sweeping reforms for oil and natural gas trading are being considered by the US commodities regulator in a bid to reduce the systemic risks posed by speculators.
Gary Gensler, chairman of the US Commodity Futures Trading Commission, said in a statement on Tuesday that it would consider setting position limits on energy futures over the summer ahead of a series of anti-speculation bills which are pending in Congress.
“Our first hearing will focus on whether federal speculative limits should be set by the CFTC to all commodities of finite supply, in particular energy commodities such as crude oil, natural gas, gasoline and other energy products,” Mr Gensler said.
Currently the CFTC does not impose position limits on those trading crude and other energy products, with limits being set instead by futures exchanges..."
Full article at http://www.ft.com/cms/s/0/958cd848-6ae5-11de-861d-00144feabdc0.html?nclick_check=1
My comment:
Having read this surely the CFTC must also know that massive short positions by one, two or three parties in gold has the opposite effect - that of squashing the gold price.
So what is the CFTC going to do about that? Set position limits? lol rofl. The answer of course is sweet yadda yadda nothing.
But rest assured should gold start surging then you can bet the CFTC will quickly enforce strict position limits for the buyers of gold contracts!!
