World Perspectives
energy

Speculative Position Limits – Again

Like the proverbial bad penny, the issues raised by the CFTC’s proposals to establish limits on the size of speculative positions held in derivative markets never seem to go away. Chairman Timothy Massad has indicated that he is determined to pass a final version of the related rules and regulations this year.Like the proverbial bad penny, the issues raised by the Commodity Futures Trading Commission’s (CFTC’s) proposals to establish limits on the size of speculative positions held in derivative markets never seem to go away. The political class decided that a root cause of the financial crisis of 2008/09 was excessive speculation, however defined. One of the underlying themes of the famous Dodd-Frank financial market reform legislation tha...

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From WPI Consulting

Communicating importance of value-added products

Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.

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