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10-25-2007, 10:23 AM
"US Congress should consider expanding the Commodity Futures Trading Commission's authority over energy derivatives trading, particularly in exempt commercial markets, the General Accounting Office said in an Oct. 19 report.
GAO's report noted that under the Commodities Exchange Act, CFTC's authority to protect market users from fraudulent, manipulative, and abusive energy derivatives-trading practices focused on traditional exchanges such as the New York Mercantile Exchange.
It said the commission facilitates market transparency by publishing aggregate trading information for oil producers, refiners, and other large commercial traders, and for hedge funds and other noncommercial traders by compiling Commitment of Traders (COT) reports. These reports include the number of traders, changes since the last report, and open positions, i.e., obligations to take or make delivery of a commodity in the future without a matching obligation in the opposite direction.
However, because of changes and innovation in the market, methods to categorize these data can distort the accuracy and relevance of the information to the public," GAO's report said.
For more information:
http://www.ogj.com/display_article/309923/7/ONART/none/GenIn/1/GAO-report:-CFTC's-regulatory-reach-should-expand/
GAO's report noted that under the Commodities Exchange Act, CFTC's authority to protect market users from fraudulent, manipulative, and abusive energy derivatives-trading practices focused on traditional exchanges such as the New York Mercantile Exchange.
It said the commission facilitates market transparency by publishing aggregate trading information for oil producers, refiners, and other large commercial traders, and for hedge funds and other noncommercial traders by compiling Commitment of Traders (COT) reports. These reports include the number of traders, changes since the last report, and open positions, i.e., obligations to take or make delivery of a commodity in the future without a matching obligation in the opposite direction.
However, because of changes and innovation in the market, methods to categorize these data can distort the accuracy and relevance of the information to the public," GAO's report said.
For more information:
http://www.ogj.com/display_article/309923/7/ONART/none/GenIn/1/GAO-report:-CFTC's-regulatory-reach-should-expand/