Printer Friendly

Air Transport Association Supports Proposed Rule on Speculative Position Limits, Recommends Even Stronger Limits to CFTC.

WASHINGTON, April 23 /PRNewswire-USNewswire/ -- The Air Transport Association (ATA), the industry trade organization for the leading U.S. airlines, today submitted public comments to the Commodity Futures Trading Commission (CFTC) in support of the proposed rule on speculative position limits for certain energy contracts. ATA comments make the following points:

* The proposed speculative position limits should be strengthened

* Excessive speculation distorts oil markets, causing higher prices and increased volatility

* Excessive speculation has contributed to lost jobs, reduced service and industry losses

* Evidence demonstrates that speculative trading, volatility and high prices are linked

* Index funds and other passive investors should be subject to position limits

* Exemptions should be limited and apply narrowly to true end users

"Oil speculators exploit gaps in the regulatory structure to drive up oil prices out of sheer greed," said ATA President and CEO James C. May. "The proposed CFTC rule, particularly if strengthened, would limit excessive speculation and the ability of investment banks and large financial interests to dominate oil markets at the expense of consumers."

The CFTC rule proposes to establish speculative position limits and increase market transparency and reporting requirements. These measures will provide regulatory support for a return of supply-and-demand fundamentals in the marketplace. Additionally, these reforms will help address the high fuel prices and volatility seen by consumers in recent years. The three-month public comment for this rule (75 FR 4144) expires on April 26, 2010.

A strong CFTC rule in combination with congressional passage of the Wall Street Transparency and Accountability Act of 2010, will close loopholes, increase transparency and limit speculative trading in the commodity futures markets.

To see ATA comments to the CFTC, please visit: Speculative Position Limits - CFTC Proposed Rule

Annually, commercial aviation helps drive more than $1 trillion in U.S. economic activity and nearly 11 million U.S. jobs. On a daily basis, U.S. airlines operate nearly 26,000 flights in 80 countries, using more than 6,000 aircraft to carry an average of two million passengers and 50,000 tons of cargo.

ATA airline members and their affiliates transport more than 90 percent of all U.S. airline passenger and cargo traffic. For more industry information, visit www.airlines.org. To learn more about oil speculation and its effects on the American economy, please visit www.StopOilSpeculationNow.com.

SOURCE Air Transport Association
COPYRIGHT 2010 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2010 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 23, 2010
Words:505
Previous Article:Jack Kevorkian's 'Death Bus' Goes to Auction via eBay.
Next Article:Newmont Receives Three Million Shares of Lydian International Inc. as Consideration for the Sale of Its JV Interest in the Amulsar Gold Project.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters