Summary
The Commodity Futures Trading Commission's push for more formal position limits could hit a snag as enactment of proposals likely will hinge on broader financial legislation, which is still up in the air. At the March hearings on the metals markets, the agency faced opposition from the futures industry, with many experts testifying that position limits could drive trading overseas. In his testimony, Richard Strait, managing partner, Richard Strait LLC, said that under mandated position limits, users likely would go to less regulated offshore markets and global OTC markets, in which case a "black pool" of unregulated derivatives traffic could lead to a bubble, causing a negative financial chain reaction similar to what happened in global debt markets.
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Extract
Metals Heavy for Cftc
The Commodity Futures Trading Commission (CFTC) push for more formal position limits could hit a snag as enactment of proposals likely will hinge on broader Financial legislation, which is still up in the air. At the Ma...
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