In addition to the many regulations already being planned by the Obama administration, the commodities are next in line to experience the power of tougher regulations.
The New York Times reports:
The Commodity Futures Trading Commission said it would consider imposing volume limits on trading of energy futures by purely financial investors and that it already has adopted tougher information requirements aimed at identifying the role of hedge funds and traders who swap contracts outside of regulated exchanges like the New York Mercantile Exchange.
Jump to the NYT page HERE.
This news comes days after rogue trading in oil caused the price of the commodity to spike several percentages higher, reaching its highest for the summer of above $73 per barrel. More importantly, there is much to be said about the speculation on commodities, which are adding to the already volatile movements in the prices. Just summer of last year, oil has reached all-time highs of $145 per barrel before dropping some 70% lower as the financial crisis climbed to its peak.