Courtney Calls for Immediate, Overdue Action to Rein in Gas Prices

Press Release

Congressman Joe Courtney has written to the commissioners of the Commodity Futures Trading Commission (CFTC), urging them to undertake overdue action to implement rules that will reduce the influence of speculators in the energy market and rein in escalating gas prices. Although the CFTC voted in October of 2011 to impose position limits in the commodities market, implementation of the limits is contingent upon stalled action on related rule-making and definition-setting.

"The need for immediate, aggressive action is clear," Congressman Courtney wrote. "We cannot continue to allow our markets to be overrun by speculators who have no commercial connection to the production or distribution of these essential goods, especially as families' budgets in Connecticut and throughout the country continue to be squeezed by exorbitant energy prices."

CFTC Commissioner Bart Chilton last week voiced his own displeasure with the process, and also called on his colleagues to expedite the process:

"I'm sorely disappointed that it has been five months since the Commission voted on this rule, and nothing--nothing--has moved forward to begin to impose position limits and address excessive speculation," Commissioner Chilton said. "I understand all the arguments about needing data, but I'm tired--and the American public is tired--of waiting for a swaps definition rule to be promulgated in order for position limits to be effective. There are things we can and should do now, and today I'm calling for them to be done, NOW.

"Specifically, in addition to imposition of spot month limits in the 28 referenced contracts in futures and options on DCMs, I am calling for a rule withdrawing the ability of exchanges to utilize position accountability levels in non-spot months for these contracts, and effectively setting limits in non-spot months. Alternatively, if we can get a swaps definition out there--now--the position limits rule can go into effect in 60 days. And I know there may be intractable issues. If that remains the case that would slow down the rule, put those few issues on a separate track and get out the main rule now. I am today, requesting that the agency move on one of these two paths in order to get position limits in place, as ordered by Congress. This is something we can do to protect the American public and to carry out our mandate of ensuring fair prices for consumers. I am mystified as to why we would not aggressively pursue this."

Source