Politics & Regulation

John Arnold warns CFTC of imposing positions limits

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Argues position limits would harm market liquidity.

John Arnold, the rarely seen founder of energy hedge fund Centaurus Advisors, appeared before the Commodity Futures Trading Commission this week to argue against imposing position limits on traders in the energy futures markets.

The CFTC hearing on speculation in energy futures markets, held August 5, followed remarks by Gary Gensler, the Commission’s new chairman, a week earlier in which he said that energy speculation has been responsible for much volatility in energy prices over the past few years.

The hearings were conducted from the stance, made clear by Gensler, that there is consensus about the need for