Commodities Traders May Face Curbs Under EU Proposal

[Joanne98]

Source: Bloombergs

Commodity traders in the European Union may face restrictions including position limits under proposals from the European Commission aimed at curbing excessive price volatility.

Curbing the proportion of a commodity derivatives market that a single trader can control may help rein in “excessive speculation,” the commission said in an e-mailed statement. Price fluctuations hurt farmers, food-makers and consumers, including in the poorest countries, the commission said.

“We need regulators to keep a closer eye on positions taken up in respect of commodity derivatives,” Michel Barnier, the EU’s financial services chief told reporters in Brussels today. “This will include the possibility of introducing position limits if necessary,” he said. “Personally speaking I believe in this.”

French President Nicolas Sarkozy said in Davos last week that speculation was driving up food prices. World food costs rose to a record in December on higher costs for sugar, grain and oilseeds, according to a United Nations report earlier this month, contributing to the uprising that ousted Tunisia’s Zine El Abidine Ben Ali on Jan. 14. Protests have spread to Egypt, Algeria, Morocco and Yemen.



Read more: http://www.bloomberg.com/news/2011-02-02/commodities-traders-may-face-curbs-under-proposal-from-european-commission.html

[xchrom]

1. recommend

[Overseas]

2. K&R ! Yes Please !! //nt

[dotymed]

3. In America we have laws against this

"unfettered" speculation. These laws were enacted by FDR when he realized how negatively this profiteering was hurting common people.
Unfortunately, under Bush II, these laws were "set aside" for many companies (like Goldman Sachs who currently compromise most of this administrations cabinet positions).
This unchecked speculation has affected gas, oil, food, anything that people need, so that these obscenely wealthy corporate "persons" and their "troops" can profit obscenely while destroying the lives of billions of people. Of course, with their "tax cuts" entrenched, they will continue to be masters of the universe while we die.
We need to follow Egypt's lead and demand an end to this needless suffering so these elites can can live beyond description.
We all share this world and to allow greed to destroy it and the majority of the people on it, is an insane "race to the bottom."

Walk like an Egyptian...