Comment Text:
I am a business owner in Point Pleasant for 40 years.
As a consumer, 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.
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.
This proposed rule, in combination with the Commission’s overall regulatory structure, is the best hope to return price stability to commodity markets.
Title VII of the Wall Street Reform Act has acknowledged the potential harm of excessive speculation and has reaffirmed the importance of position limits by providing the Commission with new authorities to impose such limits on currently unregulated markets. I believe the Commission understands its responsibility under existing law to prevent excessive speculation as an undue and unnecessary burden on interstate commerce.
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.
As a business owner for 40 years, fuel has always been our biggest expense. Our pricing schedule is set at the beginning of each year and it virtually impossible to pass on any increase to our customers during the season. The volatility in oil prices in recent years has affected everyone, both business and consumer alike. Our fishing business depends on a family’s disposable income, so raising our prices to cover a 75% increase rise in fuel costs in one year is just not possible. We have gone from what had been a profitable operation for many years to one which is barely breaking even. This is due entirely to oil prices that are out of control. We all know the line “we’re from the government and we’re here to help “well we need your help now more than ever.
I thank you for your consideration,
Sincerely,
Robert J Pennington
Robert J. Pennington
Owner
Sea Devil Fishing Co.
2417 Hemlock Lane
Point Pleasant, NJ 08742
