Comment Text:
It is essential that the CFTC hear from regular people about how important this issue is to them. I applaud the Commission’s efforts to implement the Dodd-Frank Act as thoroughly as possible especially reforms aimed at limiting excessive speculation in food and energy commodities.
Wall Street picks our pockets every time we go to the grocery store or go to the gas station or turn up our thermostat.
Supply and demand are no longer control prices for gas or wheat. Gasoline supplies are at an 18 year high. All prices of oil are driven by speculators. For commodities like gas and wheat, speculators drive the price!
The CFTC with the Dodd-Frank bill was imposed to limit Wall Street speculation. Speculators simply drive up the price of oil and gas for profit which has nothing to do with supply and demand.
I urge the Commission to implement the proposed rules regarding aggregate speculative position limits to prevent excessive speculation. At this time of fragile economic recovery, we cannot allow speculators to unduly affect our food and energy prices.
Congress called for exemptions from these limits for bona fide hedgers. I ask that the Commission define that term in the strictest sense possible, limiting exemptions to businesses that deal in physical commodities and use markets to hedge commercial risk in those commodities. Banks, hedge funds, private equity and all passive investors in commodities should not be deemed as bona fide hedgers. Institutions hedging price directional bets such as commodity index swaps, Exchange Traded Funds and Exchange Traded Notes also should not be considered as bona fide hedgers.
Thank you for your consideration.
Stephen R. Zmmett
St. Marys, PA
