You are here

Finance council should speed up speculation curbs, Chilton says

Section: Daily Dispatches

By Silla Brush
Bloomberg News
Wednesday, March 21, 2012

WASHINGTON -- A council of U.S. financial regulators should speed up Dodd-Frank Act rules needed to limit speculation on oil, natural gas, and other commodities, Bart Chilton, a member of the Commodity Futures Trading Commission said.

The CFTC and Securities and Exchange Commission, having delayed adopting regulations stemming from the 2010 financial-regulation overhaul, should consider asking the Financial Stability Oversight Council to complete the regulation defining which derivatives are swaps, Chilton said in a speech prepared for his appearance today before the Exchequer Club of Washington. The speculation limits rely on the definition.

"I realize this is a highly unusual and perhaps incendiary move, but we have a responsibility to act here, and it's high time we do so to protect markets and consumers," said Chilton, a Democrat who supports the speculation limits. "Perhaps given the importance of position limits and the purported hang-up, it's time to pass the ball to FSOC."

... Dispatch continues below ...


A Rare Opportunity with Collectible Gold Coins
Whose Premiums Are Far Below Normal

Sovereign debt problems in the United States as well as Europe will worsen this year. The mainstream financial media may never report about the likely inflationary consequences of bailouts and "quantitative easing," nor are they likely ever to recommend tangible assets for financial protection. But at Swiss America Trading Corp. we believe that it is no longer a luxury to own gold and silver coins but rather a necessity.

At the moment the public is showing little interest in Double Eagle U.S. $20 gold coins, so the price premiums above the intrinsic melt values (.9675 ounce of gold in each coin) are historically low. The ratio of price to bullion content for these coins has been 2:1 but today it is only about 1.25:1.

This is a real opportunity. So give us a call or e-mail and we will be glad to discuss the potential of these coins and how to use a ratio strategy to increase your gold ounces without money out of pocket.

In the January edition of his Early Warning Report, Richard Maybury writes: "As they are inherently in very limited supply, I believe that high-quality numismatics will become tulips, eventually rising a thousand percent or more in real terms, when money velocity goes into mid-second stage. In late stage, who knows -- 2,000 percent? 3,000?"

All inquiries will receive without charge (while supplies last) our latest book, "The Inflation Deception," as well as our newsletter "Real Money Perspectives."

-- Tim Murphy,

-- Fred Goldstein,

Telephone: 1-800-289-2646

Swiss America Trading Corp., 15018 North Tatum Blvd., Phoenix, AZ 85032

The council includes 10 voting members, including the heads of the Federal Reserve and Federal Deposit Insurance Corp. Treasury Secretary Timothy F. Geithner is chairman of the council.

U.S. senators introduced legislation today aimed at getting the CFTC to limit speculation they said has led to rising gasoline prices. Senators Bernie Sanders, a Vermont independent, and Ben Cardin, a Maryland Democrat, said their legislation would give the agency 14 days to implement rules to halt "excessive" oil-futures speculation.

"Oil prices are negatively impacting our entire economy," Sanders said at a Washington news conference today. "Excessive speculation on the oil futures market is driving oil prices up.'"

The speculation limits are among the most controversial requirements in Dodd-Frank and spurred more than 13,000 comments to the CFTC from supporters such as Delta Air Lines Inc. and opponents such as Barclays Plc's Barclays Capital. CFTC commissioners voted 3-2 at an Oct. 18 meeting to approve the final regulation, with Jill E. Sommers and Scott O'Malia, both Republicans, voting in opposition.

The International Swaps and Derivatives Association Inc. and Securities Industry and Financial Markets Association filed a lawsuit in December challenging the rule. The associations' members include JPMorgan Chase & Co., Goldman Sachs Group Inc., and Morgan Stanley. The groups argue that the CFTC never studied whether the regulation was "necessary and appropriate" or quantified the costs tied to implementing the rule. A judgment is pending.

The case is International Swaps and Derivatives Association v. U.S. Commodity Futures Trading Commission, 11-02146, U.S. District Court, District of Columbia (Washington).

* * *

Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:

Or by purchasing a colorful GATA T-shirt:

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit:


Free Month Subscription to Market Force Analysis for GATA Supporters

Market Force Analysis is a unique, patent-pending approach to commodity market analysis. An algorithm has been developed to extract supply and demand weightings from futures market data. The difference between supply and demand is the market imbalance that is called "market force," so named because it is what drives price. It brings clarity to past market action and predicts market trends. Because it is derived from accurate futures market data it is not subject to the errors inherent in macro-level estimates of supply and demand.

Learn more here:

Market Force Analysis focuses on short-term (15 days) and medium-term price predictions to help both short-term traders and long-term investors understand market moves and benefit from the generated prediction of prices. To read subscriber comments that show how much the service is appreciated, visit:

The MFA service has been pioneered by market analyst and Gold Anti-Trust Action board member and researcher Adrian Douglas.

The Market Force Analysis premium service provides:

-- A bi-weekly report.

-- Access to the MFA hot list of junior mining stocks derived from analysis of more than 800 mining stocks. The MFA hot list consistently outperforms well-known mining share indices like the HUI, GDX, and GDXJ.

-- E-mail alerts about actionable trades.

-- E-mail updates with important information.

To obtain your 1-month free trial subscription to the Market Force Analysis letter, e-mail and put "MFA Free Trial" in the subject field.