Comment Text:
Nancy Welch
28312 Farm Market Rd.
Marion, MD 21838-2618
February 28, 2012
David Stawick
Secretary, Commodity Futures Trading Commission
Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581
Dear Mr. Stawick:
Excessive speculation hurt the economy in 2008 and, once again, is harming
the economy in 2011. According to data recently released by the
Commission, speculators have raised their positions in energy markets by
64 percent compared to June 2008, bringing speculation to the highest
level on record.
We need meaningful, effective speculative position limits to restore
balance to commodities markets and ensure that they are connected to
market fundamentals, so that they fulfill their price-discovery function
properly and without distortions caused by excessive speculation. In
particular, I:
- support the Commission's immediate adoption of spot-month speculative
position limits; - urge the Commission to adopt effective back-month
levels that will accomplish the legislative purpose of curbing excessive
speculation; - urge the Commission to adopt single-month limits that are
no higher than two-thirds of the all-months-combined levels; - urge the
Commission immediately to adopt a position-accountability regime for the
nonspot months in place of its proposed position-visibility rule; and -
urge the Commission to adopt lower speculative position limits for
passive, long-only traders.
Time is of the essence, and I urge you to act quickly. Our pocketbooks and
the broader economy depend on it.
Sincerely,
Nancy Welch
4106232469
