Comment Text:
10-002
COMMENT
CL-07687
From:
Sent:
To:
Subject:
tbergin@pointbayfuel, com
Friday, April 16, 2010 11:38 AM
secretary
I Urge You to Impose
Speculative Position Limits in
Energy Futures
Contracts
Timothy Bergin
1288 Hancock Road
Toms River, NJ 08753-4020
April 16, 2010
David Stawick
U.S. Commodity Futures Trading Commission
1155 21st Street, NW
Washington, DC 20581
Dear David Stawick:
I am writing today to strongly endorse comments submitted on April 9, 2010
by the New England Fuel Institute and the Petroleum Marketers Association
of America submitted on the proposed rule to implement speculative
position limits for futures and options contracts for natural gas, crude
oil, heating oil and gasoline.
I believe great harm is done to both businesses and consumers due to the
volatility of these markets which were designed for the opposite purpose,
to protect businesses and consumers by managing risk based on the sound
fundamentals of supply and demand. Assertive action must be taken to
address the extreme price shocks and excessive volatility that led to the
energy bubble in 2007-2008 created by faux supply and demand that in no
way reflected the actual fundamentals of the energy market. It is time to
ensure regulators have the tools they need to restore confidence in the
market.
"Speculators" and "Hedgers" needs a commodities market to balance the risk
inherent in commodities related businesses, however, financial investors
like banks,hedge funds,and index funds speculate in the energies
commodities markets for profit, unlike commodities end users who seek to
protect themselves from volatility and risk. Excessive speculation by
financial institutions causes market instability. The proposed rulemaking,
if strengthened and passed, gives the commission the opportunity to take
an important step in this regard, particularly to limit the positions one
speculator can control in any single commodity.
The comments I have written to endorse point out the technical
imperfections of this rule, and I urge strong consideration of the
improvements suggested in those comments. The commission has an
obligation, both by statute, and I believe morally, to establish hard
limits on the size of positions that speculators can take in the market,
with no exemptions.10-002
COMMENT
CL-07687
I urge Commissioners to look to the past to determine the future. There is
strong opposition by the financial community to the proposed rule changes.
We tried it their ~vay and the cost ~vas significant to businesses like
mine, consumers like mine, and the economy as a ~vhole; an economy ~vhich
may not ~vithstand another shock like the one ~ve sa~v ~vith the previous
energy bubble. Please establish, ~vith quick implementation, restrictive
speculative position limits for energy commodities.
Thank you for your time.
Sincerely,
Timothy J Bergin
