Washington—Senator Dianne Feinstein (D-Calif.) today issued the following statement after the Commodity Futures Trading Commission (CFTC) announced a final rule to establish position limits for certain energy commodities. The regulation implements a provision in the Dodd-Frank Wall Street Reform Bill written by Feinstein to reduce extensive speculation in American energy markets.
“The CFTC has finally established these long overdue limits on rampant speculation in energy swaps and derivatives markets. I fought to include a provision in the Wall Street reform bill that required speculative position limits in these markets by January 2011, and I am pleased that final limits have now been adopted.
“Having no limits on energy commodity positions put our markets at risk for rampant speculation, price fluctuation, and manipulation that impacts the economic bottom line for California families and consumers.
“Congress has given the CFTC the power to truly oversee swaps and futures markets comprehensively, and I remain hopeful that it will use this authority to assure these markets are transparent and free of excessive speculation and manipulation.”