Speculation

The Commodity Futures Trading Commission (CFTC) Thursday voted out the long-anticipated proposal to set hard position limits to curb excessive speculation in the derivatives market. And until the position limits can be implemented, the agency head issued a directive for staff to closely monitor traders with large positions.

President Obama on Thursday tapped Acting Chairman Jon Wellinghoff to be chairman of the Federal Energy Regulatory Commission, confirming speculation that had been rampant in Washington, DC, energy circles for the past week. The president also announced his intent to nominate existing FERC Commissioner Suedeen Kelly for a third term at the agency.

President Obama Thursday tapped Acting Chairman Jon Wellinghoff to be chairman of the Federal Energy Regulatory Commission, confirming speculation that has been rampant in Washington, DC, energy circles for the past week. The president also announced his intent to nominate existing FERC Commissioner Suedeen Kelly for a third term at the agency.

As the Commodity Futures Trading Commission moves to crack down on excessive speculation in energy markets by imposing position limits, one U.S. senator is eyeing changes in the tax code to cut trading volume, while another will propose a bill to require the reporting of over-the-counter (OTC) derivative trades — including energy transactions — to a central trade repository, making it easier for regulators to keep closer tabs on the market.

As the Commodity Futures Trading Commission seeks to crack down on excessive speculation in energy markets by imposing position limits (see Daily GPI, July 29), a U.S. senator is eyeing changes in the tax code to achieve the same result.

Speculation surrounding the United States Natural Gas Fund’s (UNG) impact on the natural gas futures market has reached a fever pitch, and now some analysts are advising investors that the commodity exchange-traded fund (ETF) is not even a good investment. According to a new Raymond James & Associates report, investors are “better off” investing in gas-weighted exploration and production (E&P) companies than in UNG.

Speculation surrounding the United States Natural Gas Fund’s (UNG) impact on the natural gas futures market has reached a fever pitch, and now some analysts are advising investors that the commodity exchange-traded fund (ETF) is not even a good investment. According to a new Raymond James & Associates report, investors are “better off” investing in gas-weighted exploration and production (E&P) companies than in UNG.

Potentially big regulatory changes lie ahead for the natural gas industry as Congress gets down to business in the next few months on legislation to limit speculation in the commodity markets. “The real question is whether the changes will make the existing regulatory system stronger or create an entirely new system that will fix the perceived problems without creating new problems for the future,” Gregory Mocek, former director of enforcement for the Commodity Futures Trading Commission (CFTC), told NGI.

Potentially big regulatory changes lie ahead for the natural gas industry as Congress gets down to business in the next few months on legislation to limit speculation in the commodity markets. “The real question is whether the changes will make the existing regulatory system stronger or create an entirely new system that will fix the perceived problems without creating new problems for the future,” Gregory Mocek, former director of enforcement for the Commodity Futures Trading Commission (CFTC), told NGI.