BUSINESS

Case Study On How Lobbyists Are Undermining Dodd-Frank

10/07/2011 08:25 am ET | Updated Dec 07, 2011

On October 18 the Commodity Futures Trading Commission (CFTC) will vote on a proposed rule to limit the percentage of contracts in a given commodity that any individual trader can own. The rule, mandated by the Dodd-Frank financial reform bill, could potentially be very important: If a trader or bank is allowed to own too high a share of any given market, financial reform advocates argue, that entity can control the price of the market for its own purposes; or, even if there is no manipulation, market prices may simply rocket higher, untethered to any real-world conception of supply and demand. Indeed, in the past few years, allegations of speculation and market manipulation have been thrown at grain markets, oil markets, and even commodities like silver and cocoa.

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