US regulators are intensifying their scrutiny of commodities markets in the wake of record high prices and a huge influx of cash from institutions into the sector.
Commodity Futures Trading Commission (CFTC) announced the formation on June 10 of an interagency task force to evaluate developments in commodity markets.
The task force – which includes staff from CFTC, Federal Reserve, Department of the Treasury, Securities and Exchange Commission, Department of Energy, and Department of Agriculture – will examine investor practices, fundamental supply and demand factors, and the role of speculators and index traders in the commodity markets.
New York Federal Reserve Bank president Timothy Geithner held a meeting with 17 financial firms to discuss commodities as well as credit default swaps on June 9. Geithner said he wants to create a clearing...