Traders Set to Win in Trump-Era Redo of Oil Speculation Rule
- CFTC plans softer constraints than those proposed under Obama
- Commodity position limits have long faced industry opposition
Photographer: Daniel Acker/Bloomberg
This article is for subscribers only.
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 Thursday 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.