My firm belief is that we must aggressively use all existing authorities to ensure market integrityThe Times cited volatility in the oil market over the last year and concerns that such volatility was linked to speculators as Mr. Gensler's motivation. While I generally agree that over the last 18 months to 2 years, crude valuation has been significantly impacted, if not outright driven, by speculation, I am left wondering why not bar “purely financial investors” from investing in oil futures all together?
No really, why don’t we? I know market regulation is a favorite bogeyman of the Right, but purely financial investors, or speculators, have absolutely nothing to do with the market for oil -- that is, they do not actually seek to purchase or sell oil. Rather than reflecting the dynamics of supply and demand, these sorts of investors effectively place bets on crude's price and inject a wholly artificial pressure into the market. Never mind the folly of allowing the price of a commodity so vital to our economy and our national security be tortured by the whims of these sorts of investors, limiting the volumes of futures they might hold seems at best artifice and a half-measure.