WASHINGTON – With a 4-1 decision, the Commodity Futures Trading Commission (CFTC) okayed a rule that limits energy futures and options contracts for four energy commodities, Congress Daily reports. While the rule would only affect 10 large traders, the decision generated much debate. A 90-day comment period will commence before the commission votes on whether to put the rule in place. Some experts have pointed to investor involvement in the futures and options contracts as causing part of the upswing in energy prices two years ago. Four commodities, traded on the Intercontinental Exchange and the New York Mercantile Exchange, would be affected by the decision: Henry Hub natural gas; light sweet crude oil (West Texas Intermediate); New York Harbor No. 2 heating oil; and New York Harbor blendstock. If approved, the proposal would put in place four set speculative position limits. Swap dealers and traders already possessing an inventory of the physical commodity or who will buy or sell it would be exempt from the limits. CFTC Commissioner Bart Chilton said the new limits “err on the high side,” but that he would support a vote for moving forward because the commission could “recalibrate to ratchet [the rules] down or even increase them as deemed appropriate.”

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