Position Limits Needed in Commodities Markets, EU’s Barnier Says

Commodities traders should be subject to position limits to curb food price volatility, Michel Barnier, the EU’s financial services chief, said.

“I personally think that we should restrict positions so an investor can’t monopolize too big a share of the market,” Barnier told reporters in Brussels today. “I didn’t wait to see proof to start to act.”

World food costs rose to a record in December on higher costs for sugar, grain and oilseeds, the UN reported Jan. 4, contributing to the uprising that ousted Tunisia’s Zine El Abidine Ben Ali on Jan. 14. Protests have spread to Egypt, Algeria, Morocco and Yemen.

Higher commodity prices are “leading to riots, demonstrations and political instability,” Nouriel Roubini, the New York University economics professor who predicted the financial crisis, said yesterday in an interview with Tom Keene on Bloomberg Television’s “The Pulse.” “It’s really something that can topple regimes, as we have seen in the Middle East.”

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: