US CFTC moves closer to implementing energy trading limits

14 January 2010 22:00  [Source: ICIS news]

HOUSTON (ICIS news)--The US Commodity and Futures Trading Commission (CFTC) took another step towards limiting energy trading speculation with a 4-to-1 vote on Thursday to elicit public comment on the issue.

The futures market regulator is seeking public input on its plans to implement caps on positions in the volatile futures trading markets of oil, gasoline, heating oil and natural gas.

The move is an attempt to possibly temper "unreasonable fluctuations in the price of a commodity," the CFTC said in Thursday's meeting agenda.

A spokesman for the CFTC said public comments can be received for 90 days after the official publication of Thursday's vote, which should take place some time next week.

The US chemical industry has long been in favour of tighter control in energy markets to reduce uncertainty in feedstock costs.

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By: Ryan Hickman
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