Recently, the United States District Court for District of Columbia vacated the positions limit rule issued by the Commodity Futures Trading Commission (CFTC). CFTC was charged with developing such a rule when the Wall Street Reform and Consumer Protection Act became law in 2010. The positions limit rule would limit the number of derivatives contracts traders could hold in the commodities market, including oil, for the first time. ALPA and the aviation industry have long been supportive of ridding the commodities markets of rampant speculation in the oil market. This speculation continues to create inflated fuel prices for our companies and consumers at the pump as well as unwanted volatility in the oil market.
This “speculation premium” paid to Wall Street traders should be used to invest in our companies and employees. ALPA supported the Wall Street Reform and Consumer Protection Act and continues to support S 1598- The Anti-Excessive Speculation Act introduced by Senator Bill Nelson (D-FL). You can read the entire story about the Court’s decision here. http://dealbook.nytimes.com/2012/09/28/judge-strikes-down-dodd-frank-trading-rule/#Judge Wilkins ruling