The Futures Industry Association testified before the Commodity Futures Trading Commission on the third day of hearings regarding speculation in the energy markets and urged the agency to consider the risk of “market migration” if it applies restrictive position limits in the futures markets. “Repeatedly we are told by our members, in the most emphatic terms, that futures markets and their inherent price discovery function are moveable,” said Mark Young, a partner in the Washington office of Kirkland and Ellis who testified on behalf of the FIA. The FIA also reiterated its view that the CFTC should preserve the position limit exemptions for swap dealers that use futures to hedge risks in their OTC swap positions.
