Indiana Grain Company, LLC

Posted: 08/20/09

By: tomgrisafi

Yesteday, AgSquawk reported before other traders audio services that CFTC is launching a new approach to the market's biggest traders as part of an effort to curb excessive speculation.

According to the Wall Street Journal, the Commodity Futures Trading Commission "revoked exemptions previously granted to two investment firms that allowed them to go beyond federal limits on holdings of corn, soybeans and wheat."

In July, CFTC Chairman Gary Gensler signaled plans to install limits on oil and gas markets. And this week, Mr. Gensler announced the agency is seeking authority to impose limits on the lightly regulated but rapidly growing carbon-trading market.

"Position limits should be consistently applied and vigorously enforced," Mr. Gensler said in a statement on Wednesday. "Position limits promote market integrity by guarding against concentrated positions."

Mr. Gensler's stance has led to concern among traders, banks and exchanges that tighter restrictions may send investors offshore or into other markets.

Source: Wall Street Journal

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