The European Union has proposed to place restrictions on commodities derivatives markets to lower volatility in commodity prices and improve access to key raw materials, Financial Times reports. The proposal includes future trade negotiations to take more account of raw materials issues in the context of export restrictions and investment concerns as well as closer monitoring for export restrictions that hamper the raw materials supply. The proposal, which also includes a use of antitrust policy to ensure raw materials access is not distorted by anti-competitive agreements, urges for targeted regulatory measures on the financial markets, such as the introduction of position limits and the need for more transparency. EU may apply restrictions to derivatives both traded on exchanges and over-the-counter, adds Bloomberg.
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