Gary Gensler’s hearings on commodity speculation at the CFTC have explored every angle of the subject and shown the world just how little agreement there is about how the markets work. FOi pokes a stick at the hornet’s nest.
The Commodity Futures Trading Commission’s hearings into whether and how it should curb speculation in commodities have been a fascinating show of intellectual fencing.
Some of the brightest minds in the US commodities markets have thrust and parried at each other, each fighting for their own interest and their own beliefs – no doubt sincerely held.
Much could be said about the debates, but three points featured prominently. One was the question of whether users of cash-settled or physically settled futures were more to blame for price ramping.
There were arguments on both sides, but could they be missing the point?
Cash and physically delivered...