Don’t miss the latest developments in business and finance.

US regulator sets up task force to investigate price spikes

Image
Newswire18 Mumbai
Last Updated : Jan 29 2013 | 1:14 AM IST

The task force includes staff representatives from CFTC, Federal Reserve, Department of the Treasury, Securities and Exchange Commission, Department of Energy and Department of Agriculture.

The task force will examine investor practices, fundamental supply and demand factors and study the role of speculators and index traders in the commodity markets, the release said.

"High commodity prices are posing a significant strain on US households and the task force will aid public and regulatory understanding of the forces that affect functioning of these markets," CFTC said.

The task force will attempt to complete the probe soon and will make its results public, the release said. The force has been set up following growing public outrage and governmental pressure due to a sharp rise in commodity futures prices.

July oil futures on New York Mercantile Exchange recently rose $10.75 a barrel in a single session to hit a record high of $139.12. This was the highest gain in dollar terms since the exchange started oil futures trade in 1983.

More From This Section

The regulator is already conducting probes into functioning of oil futures markets and alleged manipulation in cotton futures.

On Tuesday, the regulator convened the first meeting of its Energy Markets Advisory Committee to discuss issues of transparency in energy markets, besides role of index trading, and energy trading on foreign boards of trade.

Also Read

First Published: Jun 12 2008 | 12:00 AM IST

Next Story