Uncertainty over CFTC position limits
A new position limits regime for energy trading in the US could have a significant impact on the sector. Pauline McCallion examines the proposals and finds out about the potential implications for energy players
The argument over the link between speculation and energy price volatility has been a much-visited topic in recent years. Under its new chairman Gary Gensler, the US Commodity Futures Trading Commission (CFTC) began to seriously consider the need for hard position limits on certain energy contracts in 2009. The regulator hopes that preventing a small number of players from holding a concentration of positions in certain energy contracts will limit the excessive speculation that some believe
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