London, 18 August 2010

The U.S. Commodity Futures Trading Commission said on Tuesday it has formally withdrawn its proposed rule on energy position limits as it prepares to issue broader curbs on speculation for all commodities, including energy.

The Wall Street reform law passed last month mandates the broader limits, and CFTC Chairman Gary Gensler said last week that the agency would withdraw its first proposal. The energy limits, proposed in January, responded to complaints from energy consumers about the role of speculators in energy prices, which hit record highs in 2008 -- but the rules were panned by traders, who said they would push volumes to offshore markets beyond the CFTC's reach.

Ends --