This has led to the potential for an overhaul in the commodities creation system, and the CFTC is toying with the idea of creating limits.
Hyland said that such caps imposed by the government would ultimately lower the liquidity his funds deliver to the futures markets, because the existing funds would need to be broken off into smaller funds.
CFTC Chairman Gary Gensler said that they should “seriously consider” setting limits on positions, and that they should be applied consistently to all markets dealing with physical commodities, writes Moming Zhou for MarketWatch. Only limits on agricultural commodities exist.
Hyland did say in his testimony that while current regulations generally suffice, he noted that limiting speculation by large banks would be a good idea, says Brian Baskin for The Wall Street Journal.
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