Washington, 25 March 2010

The top US futures regulator is set to hear howls of protest on Thursday from exchanges and traders that their markets would be harmed by new curbs on investment in metals markets. The day-long hearing comes as Washington moves to crack down on Wall Street excesses blamed for both the 2008 run-up in commodity prices as well as the recent financial crisis. The Commodity Futures Trading Commission and other regulators have grappled with criticism they didn't do enough to prevent the market shocks.

But the CFTC's five commissioners must weigh whether limiting speculative positions would simply push trade to markets outside of their oversight, defeating their aim to improve transparency and market integrity.

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