Traders Poised to Win in Trump-Era Redo of Oil Speculation Rules

[Tom Kirkman + 8,860]

Heads up, traders.  This is the Trump administration undoing more of the stuff from the Obama administration.  Since this is a Trump administration initiative, I fully expect that this will be knee-jerk labeled as Armageddon by Traders.  Have at it.

Traders Poised to Win in Trump-Era Redo of Oil Speculation Rules

U.S. regulators are poised to issue long-delayed restrictions on excessive speculation in oil and metals markets after tougher proposals stalled during the Obama administration, said three people with direct knowledge of the matter.

The Commodity Futures Trading Commission intends to release a new plan this week for limiting the size of bets that hedge funds and other traders can make on derivatives tied to various commodities. The constraints, less sweeping than earlier versions proposed by the agency, would impact trading on the soonest-expiring contracts, leaving intact traders’ abilities to make big wagers on longer-term contracts, two of the people said.

The effort is the CFTC’s latest attempt to pass controversial regulations that for years have faced stiff opposition from a powerful coalition of financial, energy and agricultural firms.

In another sign that the revamp will be softer than previous iterations, it’s likely to let traders take bigger maximum positions than currently allowed in some physically settled futures contracts. That’s partly because the CFTC is relying on data that shows that deliverable supplies of commodities are larger than previously estimated, said the people who requested anonymity to discuss the plan.  ...

 

... CFTC commissioners are set to vote on the new rules at a Jan. 30 public meeting. The proposal will mark the agency’s fourth attempt over the past decade to address the politically charged issue. The effort was prompted by the 2010 Dodd-Frank Act, which was passed amid surging gas prices and widespread hostility toward financial firms that lawmakers accused of manipulating commodities to boost their trading profits.

During Barack Obama’s presidency, the CFTC said it was required by law to finish the rules. But Tarbert’s proposal is based on the premise that the CFTC is moving ahead because it’s found a “necessity” for the new limits, two of the people said.  ...

 

[Enthalpic + 1,496]

15 hours ago, Tom Kirkman said:

Heads up, traders.  This is the Trump administration undoing more of the stuff from the Obama administration.  Since this is a Trump administration initiative, I fully expect that this will be knee-jerk labeled as Armageddon by Traders.  Have at it.

Traders Poised to Win in Trump-Era Redo of Oil Speculation Rules

U.S. regulators are poised to issue long-delayed restrictions on excessive speculation in oil and metals markets after tougher proposals stalled during the Obama administration, said three people with direct knowledge of the matter.

The Commodity Futures Trading Commission intends to release a new plan this week for limiting the size of bets that hedge funds and other traders can make on derivatives tied to various commodities. The constraints, less sweeping than earlier versions proposed by the agency, would impact trading on the soonest-expiring contracts, leaving intact traders’ abilities to make big wagers on longer-term contracts, two of the people said.

The effort is the CFTC’s latest attempt to pass controversial regulations that for years have faced stiff opposition from a powerful coalition of financial, energy and agricultural firms.

In another sign that the revamp will be softer than previous iterations, it’s likely to let traders take bigger maximum positions than currently allowed in some physically settled futures contracts. That’s partly because the CFTC is relying on data that shows that deliverable supplies of commodities are larger than previously estimated, said the people who requested anonymity to discuss the plan.  ...

 

... CFTC commissioners are set to vote on the new rules at a Jan. 30 public meeting. The proposal will mark the agency’s fourth attempt over the past decade to address the politically charged issue. The effort was prompted by the 2010 Dodd-Frank Act, which was passed amid surging gas prices and widespread hostility toward financial firms that lawmakers accused of manipulating commodities to boost their trading profits.

During Barack Obama’s presidency, the CFTC said it was required by law to finish the rules. But Tarbert’s proposal is based on the premise that the CFTC is moving ahead because it’s found a “necessity” for the new limits, two of the people said.  ...

 

This doesn't sound like undoing anything to me.  It sounds like adding more regulations (finishing what Obama started).  Did you accidentally post pro-Obama news?

"While the effort will add regulations if finalized, it’s arguably better for firms that such rules come from a CFTC chairman picked by President Donald Trump than someone appointed by a possible Democratic administration."

So in other words, "we like what he was doing but people will stomach it better if the news comes from a trump boy."  He literally called Obama's work "a necessity."

 

Doesn't trump say stuff like "for every new rule 8 have to be removed"

 

 

Edited January 30, 2020 by Enthalpic

[Enthalpic + 1,496]

Doubt it will pass if it pisses off his corporate masters.

"The effort is the CFTC’s latest attempt to pass controversial regulations that for years have faced stiff opposition from a powerful coalition of financial, energy and agricultural firms."

Edited January 30, 2020 by Enthalpic