Are market distortions driving prices?

Speculation is still a four-letter word in Congress. The Commodity Futures Trading Commission (CFTC) remains on the defensive after a continued barrage of proposals, bills and criticisms by lawmakers demonizing and blaming speculators for higher oil prices. Even airlines are getting into the act, with an open letter urging customers to contact Congress and demand reform in the oil markets by cracking down on energy speculation. As the finger pointing intensifies, more industry leaders are speaking out about what they say is a misunderstanding on the part of Congress about the way the markets work.

With its stock plummeting and Nymex members threatening to vote no on the CME Group agreement to buy Nymex , CME Group has initiated a $1.1 billion share buyback program, which will run for up to 18 months and operate in the open market, a tender offer or privately negotiated transactions. CME also intends to declare a $5 per share special dividend following the acquisition of Nymex .