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Editor's letter: Position limits on energy trading could be disastrous

stellafarrington

As financial markets hold their breath while a full regulatory overhaul wends it way through the US legislative system, it is becoming clear that energy markets could be the sector most affected by recent proposals.

First, the recently approved Senate Bill proposes position limits on commodities trading, which could have disastrous consequences. Requiring energy companies to spin off their swaps desks could lead to a dislocation between prices and fundamentals. Having energy suppliers trading

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