Tuesday, 29 March 2011

Plan To Limit The Role Of Speculators

There is a good article to share from Reuters... Big commodity traders mount last stand on U.S. curbs. The story line is:

The plan to impose "position limits", which has been under debate since prices first surged to records in 2007 and 2008...

The "position limits" fight comes as regulators worldwide are working to draw up and implement hundreds of new rules for banks and markets following the 2007-2009 financial crisis...

The U.S. banks, such as firms Goldman Sachs and JP Morgan Chase & Co., took in $5.5 billion in revenues from trading in commodity markets last year, versus a record $11 billion in 2009, according to U.S. government data...

In a letter to Gensler, Cantwell and 11 other senators urged him to use his Dodd-Frank authority against "excessive speculation"...