Comment Text:
10-005
COMMENT
CL-02036
From:
Sent:
To:
Subject:
Ralph "Buck" DeMarco
Thursday, April 8, 2010 10:16 AM
Metals Hearing
Position Limits For Precious Metals
The continuing egregious abuse of exemptions to position limits in precious metals on COMEX have
created excessive levels of concentration, illegitimate trading practices, manipulation and both sudden
and unreasonable fluctuations and unwarranted changes in the prices of these products. Restrictions to
exemptions limiting their use to legitimate hedging must be enacted and enforced to return integrity and
accountability to the market as well as to eliminate the extreme levels of concentration.
The ongoing exemption abuses in precious metals on COMEX contain their own seeds of eventual self
destruction. Commodity regulations should protect the public from negative impacts. Exemptions to
position limits exceeding x% of open interest or x contracts (pick a number) are necessary to diminish,
eliminate and prevent excessive speculation. Clearly controlling 30-40-80% of the market as we've seen
in these markets is unreasonable.
Ralph DeMarco
Del Mar, CA
