CME Group opposes energy limits

CME Group, the largest exchange for trading energy futures, formally made its case against the Commodity Futures Trading Commission’s proposed positions limits in energy futures in a comment letter to the CFTC submitted Monday, the last day of the comment period.

CME stated, “despite political rhetoric the assertion that speculators are driving energy price increases is factually incorrect.”

In addition to pointing out that the charge that speculators caused the spike in energy prices in 2008 has not been proven and that there is quite a bit of evidence to the contrary, CME points adds that the CFTC should table its proposal until pending legislation regarding the CFTC’s authority over over-the-counter products is resolved: “in view of pending legislation in Congress that is expected to provide the CFTC with broader authority over additional OTC venues, including with respect to the setting of position limits, we would urge the Commission to defer further action on the Proposal until the legislative process has been completed.”

Click here to see the entire letter.

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