– John Kemp is a Reuters market analyst. The views expressed are his own –
By John Kemp
LONDON, May 24 (Reuters) – With Congress poised to enact sweeping financial reforms next month, attention will switch back to the Commodity Futures Trading Commission (CFTC) proposals to impose tougher position limits on major energy contracts.
The Commission voted in January to put its proposals out for a major 90-day consultation exercise, which ended in late April. Staff are wading through almost 8,000 written comments. The Commission will then have to decide whether and how to reshape the proposal in the light of comments received, before putting it to a final vote.
The Commission’s 4-1 vote to put proposals out to consultation concealed hesitation about whether they should eventually be approved. Only CFTC Chairman Gary Gensler and Democrat Commissioner Bart Chilton gave the proposals full support.
Two other commissioners (Democrat Michael Dunn and Republican Scott O’Malia) voted to release them for consultation but made clear they did not necessarily endorse adoption. The fifth commissioner, Republican Jill Sommers, voted against even releasing the proposal.