Letter to Chairman Gensler

Letter

Mr. Gary Gensler
Chairman
Commodity Futures Trading Commission
Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581

Dear Chairman Gensler:

We are writing to urge implementation of speculative position limits as soon as possible pursuant to the Wall Street Reform and Consumer Protection Act of 2010. As you know, astronomical gas price increases over the past year have been crushing to American families and damaging to the economy.

Especially during a fragile economic recovery, our nation cannot afford to have speculators driving up prices at the pump. The Commodity Futures Trading Commission has the authority and responsibility to restrain such speculation and protect consumers, businesses, and our economy. One highly important power is to set position limits in energy commodities, which stop one investor from buying futures contracts in amounts that cause unwarranted price increases from excessive speculation.?? As you are well aware, the statutory deadlines enacted in the Wall Street Reform and Consumer Protection Act have long since passed -- more than six months ago -- for the Commodity Futures Trading Commission to act on important provisions regarding position limits. While we understand the challenges, we are dismayed that the Commission has failed to take any action whatsoever to fulfill its obligation and use its authority to impose position limits to the fullest extent possible at this time. For example, the agency could impose position limits in the spot month in on-exchange positions and on swaps transactions for which you have data, based upon a percentage of the deliverable supply. We request that the CFTC act immediately to impose such limits, pending its enactment of a rulemaking imposing limits as required by the Dodd-Frank Act.

Imposition of limits in the spot month, at the very least, will help to address excessive speculation in these critically important markets, and protect American consumers and taxpayers. Thank you for your prompt attention to this request.

Sincerely,

Senator Richard Blumenthal

Senator Bernie Sanders

Senator Bill Nelson

Senator Ron Wyden