WASHINGTON — Federal regulators Thursday took a first step aimed at reining in oil speculation, proposing new limits on trading in energy futures by Wall Street firms and other market players. At a public meeting, the Commodity Futures Trading Commission voted 4-1 for new trade limits on the New York Mercantile Exchange and the Intercontinental Exchange intended to keep fund managers and other speculative investors from wielding excessive influence in the market.
The move by the CFTC marks a shift in government policy, contrasting with the agency’s hands-off approach in recent years toward the volatile oil-futures markets. Except for Commissioner Jill Somers, they agreed to float the proposal for public input.
Somers, who came to the CFTC from the derivatives industry, said the agency should “make an affirmative finding” that speculative trading has fueled oil-price spikes before imposing limits. The Associated Press
