Comment Text:
Dear Chairman Gensler and fellow Commissioners:
I would urge you to institute something like a 1500 contract (7.5 million ounce) position limit for silver, which seems in keeping with the economics of the silver market. I would also urge you to monitor the identity of the contract-holders, to make sure a larger position is not being built up through different corporate fronts.
I have written previously on this subject to Commissioner Bart Chilton, when I thanked him for the video he presented last July. He was kind enough to reply to me the next day on 24 July 2010. His message began:
"Thx James
The levels still have to be determined, but we are required to implement within 180 days. We need to propose the rule for public comment and then make a final determination. I haven't personally decided on the most appropriate level. I tend to think that no trader should have more than 10% of open interest. The idea of 1500 contracts may also make sense, but I still want to be open-minded during this process.... "
I think levels of the kind mentioned here by Commissioner Chilton will ensure a decent market for silver. I fear that the 5000 position level which has been recently proposed would still enable a domination of the silver market by a few players.
Respectfully submitted,
James Anderson
