Comment Text:
Crystal Flash Energy
March 8, 2011
To the Commodity Futures Trading Commission:
As a petroleum marketer and retailer, I am writing to voice my support for immediate adoption of proposed rule (RIN 3038–AD15 and 3038–AD16 Position Limits for Derivatives).
After years of highly volatile commodity markets, the CFTC is finally poised to impose position limits for physical commodities. Dozens of studies by industry experts, economists, academics, and committees in Congress, as well as direct comments to CFTC thru prior rulemaking initiatives and working groups serve only to reinforce the need for meaningful position limits in the commodity markets and therefore adoption of this rule. Excessive trading in oil futures by speculators in 2008 cost our small business over $1 million and resulted in employee cut-backs.
I have fully supported my industry trade associations in their efforts to communicate broad industry concerns with a market structure that seemingly no longer serves a valid price discovery function. Massive positions held by speculators have contributed to price volatility that is simply unrelated to supply and demand fundamentals. The recent upheaval in the Middle East only reinforces the urgent need to enforce immediate individual and aggregate position limits on speculators in the commodities markets.
Commodities are vital resources to American industries, businesses and consumers. Well functioning markets are critical to commodity price discovery. Position limits, as proposed in this rule, will play a critical role in reestablishing market fundamentals. I urge adoption of this rule.
I thank you for your consideration,
Sincerely,
Thomas Fehsenfeld
President
1754 Alpine Ave. NW
Grand Rapids, MI 49504
(616) 365-3260
[email protected]
www.crystalflash.com
