Comments on: COLUMN-Cocoa’s rise and fall puts spotlight on FSA: John Kemp Mon, 31 Oct 2016 15:40:16 +0000 hourly 1 By: Omid_Rahmani Sun, 26 Sep 2010 21:23:42 +0000 Although the article is focused on the FSA, even the CFTC’s powers and policies are far from a preventative measure against excessive positions on futures markets, including cocoa. Fundamentally, it is index traders which are behind the upward pressure on prices. Index traders predominately enter swap agreements with swap dealers such as investment banks, and these swap dealers then hedge their risks in futures markets – and are exempt from positions limits in both the US and the UK. Swap dealers remain bona fide commercial hedgers, and the speculators behind the swap deals effectively escape regulation.