Commodities Crackdown Could Curb ETFs (UNG, USO)
Don Dion wrote an interesting article today on thestreet.com highlighting the Commodities Futures Trading Commission (CFTC)’s review of the ETF hedging exemption. Dan states, “Strict position limits on commodities trading could curb the development of ETFs like U.S. Oil (USO) and U.S. Natural Gas (UNG). ETFs currently use an exemption to give investors access to complex futures markets, but regulators are beginning to question whether investors should be there in the first place.”
Further into the article Don states, “The managers of UNG and USO have been quick to contradict claims that their funds have undue influence on the commodities market. Comments from CFTC General Counsel Dan Berkovitz indicate that the CFTC does not have to wait around for proof before acting. During the first hearing on commodity position limits, Berkovitz noted, “you don’t have to wait for some damage to the market or some undue burden on commerce.”
For the full story click: HERE
The Euro’s Demise Has Been Set in Motion: Are you protected?
"Nationalism will emerge. Healthier countries will not see fit to spend their hard earned money to bail out their less responsible neighbors."
CLICK HERE to get your Free E-Book, “Why It’s Curtains for the Euro”
GET A FREE TREND ANALYSIS FOR ANY ETF HERE!
Most Comments