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Article: CME Group Releases White Paper Providing Recommendations For Imposing Position Limits In Energy Derivatives Markets.
- Article from:
- Mondaq Business Briefing
- Article date:
- September 28, 2009
CopyrightCOPYRIGHT 2009 Mondaq Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The White Paper recommends a hard position limit regime for energy markets, balanced with the assurance that such limits do not have a detrimental effect on price discovery and hedging functions of futures markets.
On September 16, 2009, CME Group released a White Paper (Paper) addressing concerns of "excessive speculation" in the energy markets. While dismissing the notion that "excessive speculation" was the cause of increased energy prices from 2007 to mid-2008, the Paper acknowledges that confidence in the markets may be undermined by the perception that speculators may be driving commodity prices. The Paper recommends a hard position limit regime for energy ...