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CME Questions Curbs On Commod Speculation

The world’s most diverse derivatives marketplace CME Group has expressed concern over a new regulation on speculation in commodity markets.

The world’s most diverse derivatives marketplace CME Group has expressed concern over a new regulation on speculation in commodity markets, The Wall Street Journal reports. The U.S. Commodity Futures Trading Commission (CFTC) has voted in a rule that will limit traders’ positions in 28 different commodities.

The new rule may restrict lawful risk management activities by commercial participants, said CME. Some CFTC members said ahead of the vote the new limits were not needed for lack of conclusive evidence of speculation affecting commodity markets. CME and others have also questioned the CFTC’s authority in creating limits without first proving they are essential.

Click here for the story from The Wall Street Journal.

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