Home / Knowledge / News / Textiles / CFTC announces several policy initiatives

CFTC announces several policy initiatives

06
Jun '08
On June 3, 2008 the Commodity Futures Trading Commission (CFTC) announced several policy initiatives to address the concerns about the agricultural futures markets raised at its April 22nd roundtable in Washington, DC.

In order to address the lack of convergence between the futures and cash prices, the CFTC has asked the Agricultural Advisory Committee (whose members include representatives of national farm organizations, major commodity groups, agribusiness concerns, and agricultural bankers), (1) to collect further industry input regarding the role and size of over-the-counter agricultural swaps, and the practices of exchanges on determining margins, daily price limits and methodologies of setting settlement prices; and (2) to develop proposals for improving convergence between futures and cash prices.

The CFTC staff is working with agricultural lenders to facilitate an understanding of financing and credit issues faced by market participants arising from higher margins in the futures market when commodities prices rise.

In order to improve oversight of the futures market and bring greater transparency and scrutiny to the types of traders in the marketplace, the CFTC will:

(1) require more detailed information from index traders and swap dealers in the futures markets, and review whether classification of these types of traders can be improved for regulatory and reporting purposes;

(2) withdraw the proposed rulemakings that would have increased the Federal speculative position limits on certain agricultural futures contracts, including cotton, and created a risk management hedge exemption to positions held by (a) intermediaries who pass price risks on to their customers (such as index funds), and (b) pension funds and other institutional investors seeking to diversify risks in portfolios by including an allocation to commodity exposure;


Interviews View All

Milind Khandwe, Hindoostan Innovation Centre

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Yashiki Gumber, Sahiba Fabrics

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Mohammad Mamun Ar Rashid, UL VS Bangladesh Ltd

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Simon Daplyn,

Simon Daplyn

Switzerland-based Sensient Imaging Technologies is a pioneer with a global ...

Christiane Thies,

Christiane Thies

Founded in 1892, Thies has concentrated on the fabrication of high-quality ...

Riddhi Jain,

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Iago Castro Asensio, RCfil Distribuciones S.L.

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

S Ziya Gumuser, Teknomelt

S Ziya Gumuser
Teknomelt

Turkish nonwoven manufacturer Teknomelt has been around for only seven...

Marten Alkhagen, Swerea IVF AB

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Silvia Venturini Fendi, Fendi s.r.l

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Cigdem Akin, Cigdem Akin

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


November 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Follow us on instagram

Follow

Follow Fibre2Fashion On


Advanced Search