Comment Text:
I urge that the commission strengthen the proposed rule and in light of the growing commodities bubbles that threaten our economic recovery and security, I urge its immediate passage and enforcement.
Commodities such as energy and food are vital resources to American industries, businesses and consumers first and foremost. Speculators have a role in providing liquidity to the market and helping energy and agriculture companies and consumers manage price risk. But when they dominate these markets (as they do now) they have the opposite effect. They undermine these business’ hedging needs and distort the price discovery functions of the markets.
The position limits rule, therefore, will play a crucial role in reestablishing the true purpose of and help return stability and confidence to these markets. Again, I urge adoption of this rule.
I am greatly disturbed over the tremendous rise in fuel prices and the fact that true market forces in terms of real demand are not at work. It is well known that less than 10% of the oil or gasoline traded is actually delivered. The market is now driven by actual supply and demand but by speculation. We need immediate controls because this commodity impacts the lives of every American citizen in so many ways.
I thank you for your consideration,
Sincerely,
Mark Blake
