A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
A look at the news

In the United States, regulators vote for position limits on commodity markets

24 January 2011

Passed by the American Senate on July 15, 2010, the “Dodd-Frank Act” was launched by President Obama to regulate the U.S. financial system, in particular through the regulatory oversight of commodity markets. More than six months after the vote and the enactment of the legislative text, the law still has not been adopted, as delays vary from three months to four years following implementation decrees by concerned regulators.

Consequently, in early January 2011, members of the Commodity Futures Trading Commission (CFTC)––the federal agency in charge of regulating commodity exchanges––voted in favor of implementing “position limits” regarding 28 commodities.

Should these rulings be adopted, the regulation process will entail two stages, or enough time for regulators to achieve maximal data gathering on the scope of the opaque swaps market.

    1) To begin with, positions in futures markets will be limited to 25 percent of the available supply volume;

    2) Later, any trader holding positions on less than 25,000 contracts will be limited to 10 percent of the aggregate amount of a given commodity, and 2.5 percent if he holds positions on more than 25,000 contracts.
This legislation is crucial to facilitate commodity-trading activities where most transactions are made on swap markets. However, to avoid competition between the various exchanges and maximize the effectiveness of such system, it is most important that European and Asian financial marketplaces include these very supervision and position limitation mechanisms.
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Paris, 26 April 2019