Summary
If the CFTC places hard position limits on energy futures markets and takes away the hedge exemption from swap dealers who help facilitate investments in long-only commodity indexes, it would not necessarily stop the long only commodity funds from operating, but it could have a large impact on them and they are looking at alternatives just in case. S&P's been working on the non-US index since 2007, but that has accelerated recently based on client concerns over impending regulatory changes. The key issue for index providers is finding markets with enough liquidity. Jim Rogers, creator of the Rogers International Commodity Index, has no immediate plans to create a new index but figures if regulations make it difficult to use US markets, other markets will step in to fill the void.
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Extract
Funds Could Flee U.S.
If the CFTC places hard position lim- its on energy futures markets and takes away the hedge exemption from swap dealers who help facilitate investments in long-only commod...
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