The Commodity Futures Trading Commission has proposed new position limits to curb speculation. The goal is to help prevent spikes in fuel and agricultural commodities. If approved the plan would cover 28 different commodities. The proposal is expected to face opposition from market participants as well as some commissioners. The trading limits may not solve price volatility concerns and could have the effect of lowering liquidity.
To read a related Financial Times article, please click here:
http://www.ft.com/cms/s/0/d13ced4e-1f46-11e0-8c1c-00144feab49a.html?ftcamp=rss#axzz1AxgQwnHR
Jim Sutliff