Comment Text:
Dear Chairman Gensler and fellow Commissioners:
This cannot continue, if you do not bring derivatives under control our country may collapse. You are small men in the grand scheme but you might be the last guardians of the road before it runs off a cliff. We are nearing a point of no return. If cowardice is your choice then to hell with you. Use your power to save us, or be forgotten for all time.
I urge you to approve the staff’s proposal on position limits, including limiting exemptions to bona fide hedgers. I would ask you, however, to readjust the proposed formula in silver. The current formula would result in a position limit of over 5,000 contracts for any single speculator, on an all-months-combined basis. 5,000 contracts is the equivalent of 25 million ounces of silver. This is too high of a threshold in light of the realities of the world silver market.
There are only three mining companies in the world who produce more than 25 million ounces of silver per year and only a similar number of industrial consumers using more than that amount. Any speculator holding an amount of silver derivatives greater than what 99% of the world’s silver producers and consumers make or use in a year would have inordinate pricing power. The purpose of speculative position limits is to prevent such a circumstance.
Please institute a 1500 contract (7.5 million ounce) position limit for silver.
in support of Ted Butler and the American way
Jeremy Nuttall
