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Comment for Proposed Rule 75 FR 4143

  • From: Rober McNaughton
    Organization(s):

    Comment No: 15384
    Date: 4/13/2010

    Comment Text:

    10-002
    COMMENT
    CL-06384
    From:
    Sent:
    To:
    Subject:
    [email protected]
    Tuesday, April
    13, 2010 3:39 PM
    secretary
    Proposed Speculative Position Limits on Energy
    Robert McNaughton
    167 Acorn Drive
    Middletown, CT 06457-6125
    April 13, 2010
    David Stawick
    Secretary, Commodity Futures Trading Commission
    Three Lafayette Centre
    1155 21st Street, NW
    Washington, DC 20581
    Dear Mr. Stawick:
    A hedge fund employee related to me several years ago how his colleagues
    were "dancing in the aisles" as the nation was gasping when gasoline
    prices were soaring. He said that they were knowingly and consciusly
    mapipulating the price of oil, and that they "earned" fortunes as oil
    prices went up, and then again when they went down a bit. their shenigans
    were directly harmful to ordinary citizens, as well as to business and
    industry - which ultimately had to pass on the higher costs to customers,
    so we were all punished by these speculative traditing activities.
    I am writing in support of the CFTC's Proposed Federal Speculative
    Position Limits that will reestablish speculative position limits on maj or
    energy commodities. This rule will provide stability to the marketplace
    and help prevent future price bubbles. The CFTC must quickly approve a
    strong rule to protect America[] s struggling economy. Wall Street's
    speculative trading in oil not only hurts the economy, but hurts every
    American who pays excessive prices at the pump, for groceries, home
    heating oil and everything related to transportation.
    Our tax dollars were used to bail out large Wall Street firms when they
    were on the brink of bankruptcy. It is these same institutions that
    pushed the price of gasoline well past $4 per gallon in 2008 by gambling
    on oil and continue to profit at every American [] s expense.
    Rampant oil speculation by large Wall Street trading firms has resulted in
    extreme volatility in energy markets and unwarranted price spikes in
    recent years. Given that supplies are at record highs and demand remains
    weak, fundamentals cannot explain recent price hikes and destructive price
    swings. Unless the CFTC adopts the proposed rule, markets will continue to
    fluctuate wildly.
    Position limits existed in energy markets until 2001 and currently apply
    to agricultural commodities. CFTC should use its existing experience to10-002
    COMMENT
    CL-06384
    regulate position limits of speculators and prevent excessive
    concentration in the energy markets, ~vhile ensuring that exemptions to
    these limits afforded to real physical players such as fuel cooperatives,
    public utilities, truckers and airlines are not exploited by big banks and
    billionaire investors.
    Energy consumers desperately need stability in the marketplace. I
    encourage the CFTC to adopt the Proposed Federal Speculative Position
    Limits before volatile fuel prices further harm the country [] s already
    ~veakened economy.
    Sincerely,
    Robe~McNaughton
    860-344-9136