Post by jeffolie on Dec 16, 2010 9:30:43 GMT -6
Silver/gold position limits rule...mid Jan...phase w/spot mo
...CFTC admits will miss deadline on position limits...rule in mid-January...phase in limits starting with spot month...hearings next year to review CFTC rule-making for derivatives, which are being brought under federal oversight for the first time.
Wed Dec 15, 2010
* CFTC's Gensler says won't have final rule in mid-January
* CFTC plans to phase in limits starting with spot month
* Some lawmakers say CFTC is acting before it has data
WASHINGTON, Dec 15 (Reuters) - The U.S. futures regulator acknowledged on Wednesday it will miss the January target for issuing a final rule on limiting the amount of contracts a trader can control in agricultural, energy and metals markets.
The U.S. Commodity Futures Trading Commission will also propose phasing in position limits, putting them first on the spot month and then deferred months or positions in all months combined. The CFTC will unveil the details of its plan on Thursday in its almost three-year crusade to prevent a repeat of the 2008 surge in commodity prices to record highs. [ID:nCFTCREG]
Market participants already had doubts the CFTC would meet the mid-January target for implementing position limits as required under the new financial reform law. Some Republican lawmakers, exchanges and large investors have urged the CFTC to move more slowly to prevent curtailing liquidity and increasing market volatility.
CFTC Chairman Gary Gensler told a House Agriculture subcommittee that a final rule would be issued "as soon as we can sort out" the public comments on the proposal, which would be open to comment for 60 days. The Agriculture Committee has jurisdiction over CFTC.
"We'll not finalize it by the statutory date," said Gensler.
Gensler did not suggest the level at which limits would be set. He said a formula could be used at first, with details added later.
Gensler and CFTC Commissioner Bart Chilton said spot month limits would be easier to implement than limits that cover multiple months.
"The spot month, we could do now," said Chilton, and base it on a fraction of the deliverable supply. CFTC considered a similar approach when it looked solely at energy limits.
Gensler said spot-month limits "could be phased in sooner than the all-month limits."
"The commission could consider proposing single-month and all-months-combined position limits based on the open interest for futures, options and economically equivalent swaps," he said.
...In an interview last week, Lucas said he expected to hold hearings next year to review CFTC rule-making for derivatives, which are being brought under federal oversight for the first time.
www.reuters.com/article/idUSN1515374920101215
...CFTC admits will miss deadline on position limits...rule in mid-January...phase in limits starting with spot month...hearings next year to review CFTC rule-making for derivatives, which are being brought under federal oversight for the first time.
Wed Dec 15, 2010
* CFTC's Gensler says won't have final rule in mid-January
* CFTC plans to phase in limits starting with spot month
* Some lawmakers say CFTC is acting before it has data
WASHINGTON, Dec 15 (Reuters) - The U.S. futures regulator acknowledged on Wednesday it will miss the January target for issuing a final rule on limiting the amount of contracts a trader can control in agricultural, energy and metals markets.
The U.S. Commodity Futures Trading Commission will also propose phasing in position limits, putting them first on the spot month and then deferred months or positions in all months combined. The CFTC will unveil the details of its plan on Thursday in its almost three-year crusade to prevent a repeat of the 2008 surge in commodity prices to record highs. [ID:nCFTCREG]
Market participants already had doubts the CFTC would meet the mid-January target for implementing position limits as required under the new financial reform law. Some Republican lawmakers, exchanges and large investors have urged the CFTC to move more slowly to prevent curtailing liquidity and increasing market volatility.
CFTC Chairman Gary Gensler told a House Agriculture subcommittee that a final rule would be issued "as soon as we can sort out" the public comments on the proposal, which would be open to comment for 60 days. The Agriculture Committee has jurisdiction over CFTC.
"We'll not finalize it by the statutory date," said Gensler.
Gensler did not suggest the level at which limits would be set. He said a formula could be used at first, with details added later.
Gensler and CFTC Commissioner Bart Chilton said spot month limits would be easier to implement than limits that cover multiple months.
"The spot month, we could do now," said Chilton, and base it on a fraction of the deliverable supply. CFTC considered a similar approach when it looked solely at energy limits.
Gensler said spot-month limits "could be phased in sooner than the all-month limits."
"The commission could consider proposing single-month and all-months-combined position limits based on the open interest for futures, options and economically equivalent swaps," he said.
...In an interview last week, Lucas said he expected to hold hearings next year to review CFTC rule-making for derivatives, which are being brought under federal oversight for the first time.
www.reuters.com/article/idUSN1515374920101215