Comment Text:
Dear Mr. Stawick
David A. Stawick
Secretary
Commodity Futures Trading Commission
Three Lafayette Center 1155 21st Street, NW
Washington, DC 20581
RE: The Dodd-Frank Wall Street Reform Act
Mr. Stawick,
While developing the rules to implement the Dodd-Frank financial reform law, it is important that the CFTC do everything possible to bring order back to commodity markets by limiting excessive speculation.
Specifically: The definition of commercial risk should be limited to physical commodities and should not be expanded to include financial risks for banks and hedge funds. Position limits should be defined to address not only manipulation, but also excessive speculation, which will require a stricter approach. Exchange Traded Notes and Funds and swap-based Index Funds and other aggressive speculative instruments must be limited.
The CFTC must establish both a meaningful limit on individual ownership and a limit on collective ownership if the proposed rule regarding derivative activity is to have the intended effect of limiting conflicts of interest, assuring transparency and open competition, and preventing clearinghouses and exchanges from catering solely to the interests of a few large participants in the financial community. The commission must carrying out in-depth studies of the effects of algorithm-based trading, and consider the appropriateness of these types of investments in important commodity markets at all.
With these important points clarified, the Dodd-Frank bill has the potential to provide the stability financial markets clearly need.
Thank you for your consideration,
Sincerely,
Gregory King
5116 17th Ave S
Minneapolis, MN 55417
