US proposes limits on futures trading in 2nd try
WASHINGTON (AP) — Trading in commodities futures would be capped under a federal rule proposed Tuesday that seeks to clamp down on speculative trades, which some have blamed for driving up food and gasoline prices.
It was the second attempt to make such a rule by the Commodity Futures Trading Commission, which voted 3-1 to open the proposal to public comment. Its original rule was struck down by a federal court last year. The rule was required under the 2010 financial overhaul law.
The volume of futures contracts that financial investors can trade for 28 commodities would be restricted. The proposed exemptions for financial firms are narrower than in the original rule yet still allow the firms to promote futures trading by their commercial customers to hedge against price swings, CFTC officials said.