It might be closing the barn door after the cows got out, but the CFTC approved limits on the number of warehouse receipts (delivery certificates) that can be held by firms not directly related to the cash grain business. I’m torn on this one.On the one hand, commodity funds provide liquidity to the markets.However, I don’t really see what the index funds contribute to liquidity. They’re buy and hold investors, not traders, so do they serve a useful purpose? If you want to read more about it, Reuters has a decent story here.
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Copyright 2009
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CFTC, Grain futures, grain traders
