Anonymous ID: d3c439 April 24, 2020, 12:48 p.m. No.8910446   ๐Ÿ—„๏ธ.is ๐Ÿ”—kun   >>0560 >>0652 >>0837 >>1026

U.S. Oil Fund Says CME Has Ordered It to Limit Futures Positions

 

The U.S. Oil Fund has again rolled forward some oil futures positions in its portfolio, for the first time revealing that it had done so after orders from the CME Group.

 

The United States Commodity Funds LLC, which runs the USO, said in a regulatory filing that it received letters from the exchange on behalf of the NYMEX market regulation department on April 16 and on April 23, ordering them not to โ€œexceed accountability levelsโ€ in the crude oil futures contract for June 2020 in excess of 10,000 contracts.

 

An April 16 letter from CME said USCF, USO and related public funds could not assume a position in the June 2020 light crude oil futures contract that was in excess of the established position limit of 150,000 long futures contracts, according to the filing. Later, on April 23, CME ordered the funds not to exceed 15,000 long futures contracts for June, USCF said. For July 2020, the limit is 78,000 long futures contracts while for August itโ€™s 50,000 and for September 35,000.

https://www.msn.com/en-us/finance/markets/us-oil-fund-says-cme-has-ordered-it-to-limit-futures-positions/ar-BB139WAX

 

from 2009-and they never did anything about it then-across the board not just energy.

ICE, CME feud over position limits for energy futures

 

As U.S. regulators consider reining in excessive energy speculation, the two major U.S. futures exchanges have squared off over whether authorities should impose a blanket cap on positions traders hold on one exchange.

 

The smaller but faster-growing IntercontinentalExchange ICE, 0.00% wants the regulator to set a market-wide cap. The older and bigger CME Group Inc. CME, 0.00%, which owns the New York Mercantile Exchange, wants individual exchanges to set caps based on the size of the exchange.

 

The outcome of the regulatory decision, expected by year-end, could tilt the intensely competitive playing field for energy futures trading, extending a long-running rivalry between CME's Nymex and ICE.

 

Quarterly results from both, expected this week and next, will likely show active trading of crude oil and other energy contracts has been supporting daily volumes while other products have lost ground.

 

"They are competitors, so it makes sense that there is commercial dispute," said Jamie Selway, an analyst at White Cap Trading. "If the exchanges can't work together, the CFTC will step in and resolve this."

 

The Commodity Futures Trading Commission is planning to set limits on the number of positions traders can take in futures markets, a strategy designed to moderate steep run-ups in prices that hurt consumers of energy.

https://www.marketwatch.com/story/ice-cme-feud-over-energy-speculation-limits-2009-10-27