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CFTC's delay on position limits aggravates Chilton
Statement on Position Limits, "Keeping Promises"
By Bart Chilton, Member
U.S. Commodity Futures Trading Commission
Thursday, December 2, 2010
Yesterday the commission held the sixth in a series of open meetings to address rules implementing the Wall Street Reform and Consumer Protection Act of 2010. I commend the CFTC's staff for working diligently on the myriad rules mandated by the act, even now in the face of a pay freeze. The staff of the CFTC truly exemplifies the meaning of "service" in the performance of their roles as dedicated public servants.
I am concerned, however, with regard to the potential derailment of what I consider to be one of the most important rules required by the Reform Act: implementation of speculative position limits. Congress put special emphasis on this provision, to protect markets and consumers from excessive speculation in commodities markets. Indeed, we were given a specific implementation date for position limits on energy and metals contracts -- January 17, 2011 -- well in advance of the majority of other reform act rules. We have a commitment to enact this rule on time, a "promise to keep," with the American consumer, who is affected daily by the prices discovered on commodities markets.
The commission had originally intended to discuss position limits at yesterday's meeting; unfortunately, that did not occur. Now it appears that the commission does not intend to address position limits at its next scheduled open meeting, on December 9, 2010. This makes meeting the mandatory statutory deadline difficult, but certainly not impossible.
The reform act was passed over four months ago -- this provision isn't a "surprise" to anyone. It didn't fall out of the sky. Of course there are issues surrounding its implementation, but none of those excuse us from meeting the statutory requirements Congress has given us.
This proposal should be discussed on December 9 at the commission's next meeting; a proposal should be put out for public comment as soon as possible; and we should commit to meeting the statutory deadline. We can always find excuses, justifications, or pretexts for inaction -- this rule is too important to let any of those get in the way of fulfilling our statutory responsibilities, and keeping our promise.
Opportunity in the gold coin market
Swiss America Trading Corp. alerts GATA supporters to an opportunistic area of the gold coin market. While the gold bullion market has been quite volatile lately and as of November 29 gold has risen only $7 per ounce over the last month, the MS64 $20 gold St. Gaudens coin has risen about 10 percent in the same time. The ratio between the price of these coins and the price of gold is rising. If you'd like to learn more about the ratio and $20 gold coins, Swiss America can e-mail you a three-year study of it as well as other information.
Swiss America also can provide a limited number of free copies of "Crashing the Dollar," a book written by Swiss America's president, Craig Smith.
For information about the ratio between the $20 gold pieces and the gold price and for a free copy of "Crashing The Dollar," please call Swiss America's Tim Murphy at 1-800-289-2646 X1041 or Fred Goldstein at X1033. Or e-mail them at firstname.lastname@example.org and email@example.com.
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Prophecy Drills 71.17 Metres of 0.52 percent NiEq
(0.310 percent Nickel 0.466 g/t PGMs +Au and 0.223 percent copper)
from surface at Wellgreen Project in the Yukon
Prophecy Resource Corp. (TSX-V: PCY) reports that it has received additional assays results from its 100-percent-owned Wellgreen PGM Ni-Cu property in the Yukon, Canada. Diamond drill holes WS10-179 to WS10-182 were drilled during the summer of 2010 by Northern Platinum (which merged with Prophecy on September 23, 2010). WS10-183 was drilled by Prophecy in October 2010. Highlights from the newly received assays include 71.17 metres from surface of 0.52 percent NiEq (0.310 percent nickel, 0.466 g/t PGMs + Au, and 0.233 percent copper) and ended in mineralization. For more drill highlights, please visit: