CFTC Chief Backs Position Limits On Energy Futures

Law360, New York (July 28, 2009, 6:24 PM EDT) -- The head of the U.S. Commodity Futures Trading Commission on Tuesday reiterated a call to limit trading and take other measures to clamp down on excessive speculation in energy markets, including possibly changing rules that allow companies to hedge purely financial risks with energy futures.

CFTC Commissioner Gary Gensler said at a commission hearing that the exemption that allows hedge funds, endowments and financial firms to guard against downside risks in other investments with energy futures contracts “risks swallowing” existing position limit rules.

“The commission is...
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