WASHINGTON — A parade of financial executives warned regulators Thursday that restricting the volume of speculative trading in metals futures would drive business overseas. But two traders said metals-futures markets can be easily disrupted by big players such as banks.
As gold prices have surged, the Commodity Futures Trading Commission is weighing possible limits on the amount of trading in gold, silver and copper futures by market players who are solely financial investors. Even taking up the question is a new twist for an agency with a mostly hands-off approach in recent years toward the financial markets.
The CFTC in January took a first step aimed at reining in oil speculation, proposing new limits on trading in energy futures by Wall Street firms and other market players. Commissioner Bart Chilton wants caps on speculative trading also extended to the markets for agricultural products and metals — in a comprehensive effort to prevent market manipulation.
