Comment Text:
10-002
COMMENT
CL-07719
From:
Sent:
To:
Subject:
ngiann 1 @pitt. edu
Friday, April 16, 2010 11:54 AM
secretary
Proposed Speculative Position Limits on Energy
Nick Giannoukakis
126 Herbst Road
Coraopolis, PA 15108-3622
April 16, 2010
David Stawick
Secretary, Commodity Futures Trading Commission
Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581
Dear Mr. Stawick:
I am writing in support of the CFTC's Proposed Federal Speculative
Position Limits that will reestablish speculative position limits on maj or
energy commodities.
Furthermore, I am writing for you to support all efforts aimed at
investigating the role and the dangers of untransparent over the counter
trading of energy instruments and the use of black pools of liquidity and
crossing networks to make these untransparent and possibly illegal trades.
They add more to the volatility of energy instruments and hurt Americans
and our country's financial stability.
Our tax dollars were used to bail out large Wall Street firms when they
were on the brink of bankruptcy. It is these same institutions that
pushed the price of gasoline well past $4 per gallon in 2008 by gambling
on oil and continue to profit at every American's expense.
Rampant oil speculation by large Wall Street trading firms has resulted in
extreme volatility in energy markets and unwarranted price spikes in
recent years. Given that supplies are at record highs and demand remains
weak, fundamentals cannot explain recent price hikes and destructive price
swings. Unless the CFTC adopts the proposed rule, markets will continue to
fluctuate wildly.
Position limits existed in energy markets until 2001 and currently apply
to agricultural commodities. CFTC should use its existing experience to
regulate position limits of speculators and prevent excessive
concentration in the energy markets, while ensuring that exemptions to
these limits afforded to real physical players such as fuel cooperatives,
public utilities, truckers and airlines are not exploited by big banks and
billionaire investors.10-002
COMMENT
CL-07719
Energy consumers desperately need stability in the marketplace. I
encourage the CFTC to adopt the Proposed Federal Speculative Position
Limits before volatile fuel prices further harm the country's already
weakened economy.
Sincerely,
Nick Giannoukakis
4127787972
