29.03.2011 - CFTC could impede growth of commodity ETFs
After the public cried foul over the management of the commodities market, regulators placed position limits on the commodities futures market in an attempt to prevent price manipulation and speculation, but now one prominent commodity fund provider says the limits are hurting the exchange traded fund (ETF) industry. Last Friday, U.S. Commodity Funds (USCF) said position limits would adversely affect the value of the ETF pools managed by itself and other fund providers, stating “position limits will hamper the ability of USCF and other managers of publicly traded, unlevered, passive commodity funds to prudently meet the investment objectives of the commodity pools that they manage,” reports Christopher Doering for Reuters............................................Full Article: Source
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