Comment Text:
You can feel comfortable
David Stawick, Secretary
U.S. Commodity Futures Trading Commission
Three Lafayette Centre
1155 21
st
Street, NW
Washington, D.C. 20581
10-002
COMMENT
CL-02708
Subject: Comments on Proposed Speculative Position Limits for Energy (File #10-002)
Dear Mr. Stawick:
I am writing today to endorse comments submitted by the Petroleum Marketers Association of America and the
New England Fuel Institute submitted on April 9, 2010 on the proposed rule to implement speculative position
limits for futm-es andoptions contracts for natural gas, crude oil, heating oil and gasoline. I am also m'iting to
add my own thoughts on this matter to the public record.
Futures markets were designed as a tool for
bonafide
commercial businesses and end-users to manage risk and
"discover" prices for energy based on supply and demand economics. Businesses and consumers rely on these
markets and are harmed when they become excessively volatile or subject to extreme price shocks, as we saw
with the 2007-2008 energy bubble. In the past ten years, such events have become common and federal
regulators failed to take assertive action to adch'ess the causes and to restore confidence in the energy futures
markets.
By strengthening and passing this proposed rulemaldng, the Commission has an opportunity to take an
important step in this regard. It will be addressing the main cause of recent market instability -
excessive
speculation.
Financial investors, including banks, hedge funds and index funds, speculate in the energy
commodities markets for profit, rather than commodity-related businesses and users, who do so to protect
themselves fi'om volatility and risk. Speculators take on the risk that hedgers seek to shed, however speculation
should not dominate the markets. Moreover, one speculator or class of speculator should not be allowed to take
a large, controlling position in any a single commodity.
The Colmnission has a statutory obligation, if not a compelling moral obligation, to establish hard limits on the
size of positions that speculators cau take in these markets, and to bar them from any exemptions. The rtde that
has been proposed is not perfect, and again, I strongly m'ge the technical improvements suggested by the
comments I have written to endorse.
125 Simpson Street
Stoughton, Massachusetts 02072-2399
Heating & Air Conditioning
Hot Water Sales & Service
(781) 344-2233
(800) 696-2266
Fax (781) 344-8626You ~ fed comfor le with
10-002
COMMENT
CL-02708
In considering the ru!e, Commissioners must look past opposition by the financial community and remember
the affect that excessive speculation has on businesses like mine, my consumers and the broader economy. It
should establish restrictive speculative position limits, and implement them expeditiously, before we see a
repeat of the 2007-2008 energy bubble and another major shock to a country still recovering from recession.
Thank you for your consideration.
Sincerely,
James M. Horan
125 Simpson Street
Stoughton
MA~ 02072
125 Simpson Street
Stoughton, Massachusetts 02072-2399
Heating & Air Conditioning
Hot Water Sales & Service
(781) 344-2233
(800) 696-2266
Fax (781) 344-8626
