May 21/09 Almost 7 months ago.
U.S. panel OKs CFTC to regulate carbon derivatives
Carbon as an energy commodity
Under his plan, the Commodity Futures Trading Commission would have the authority to regulate carbon derivatives as an energy commodity.
"The carbon derivatives market should be based on a strong regulatory framework," Stupak said. "The finite nature of carbon credits and absence of a physical commodity leave it particularly vulnerable to speculation."
An energy commodity? Interesting. And, since there is an absence of anything physical it is obviously vulnerable to speculation. Imagine that? I mean who would have ever thought of anything so unique, a commodity of nothingness... save for speculators, oil companies, banks and governments hungry for tax revenue.
There are market protections included in the climate change bill. I wonder is there anything else but market concerns in there?
Stupak's carbon and energy market protections included in the climate change bill would:
* Give CFTC the authority to regulate all over-the-counter (OTC) trades that are currently not regulated.
* Regulate foreign boards of trades with energy transactions traded for delivery in the United States or on a computer terminal located in the United States.
* Close the swaps loophole, no longer allowing energy transactions to be excluded from the requirements of the Commodity Exchange Act.
* Ban naked credit default swaps.
* Set aggregate position limits for energy speculators across all markets.
* Clear all swaps through a designated clearing organization, taking them out of the "dark" markets without oversight.
* Allow the CFTC to collect fees and create an independent funding stream for oversight and enforcement of commodity markets.
* Establishes carbon as an included energy commodity subject to CFTC regulation.