CMC Signs onto Coalition Letter

CMC signed onto this letter with agricultural groups to US Trade Representative Ron Kirk commending him on the launch of free trade agreement negotiations with the EU.  Click here to read the letter.

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EU lawmakers ban “speculative” derivatives trades

STRASBOURG, France | Mon Mar 7, 2011 8:07pm GMT

STRASBOURG, France (Reuters) – EU lawmakers have approved a ban on some trading in debt insurance derivatives from 2012 to curb what some policymakers say is speculation that deepens the euro-zone debt crisis.

Monday’s vote marks the first milestone in bringing the hotly-disputed measure onto the bloc’s statutes.

The European Parliament’s economic and monetary affairs committee approved by a 34-to-8 vote a draft law from the European Union’s executive European Commission.

The broad, cross-party majority means the assembly is in a strong position to negotiate with EU states, who have joint say on the final version of the measure. EU finance ministers, who have been split over key elements, meet next week.

Green Party lawmaker Pascal Canfin, who is steering the measure through the assembly, said sovereign debt speculation is still causing chaos in the euro zone.

“Banning uncovered credit default swaps (CDS), which allow market players to speculate on sovereign debt of European countries, would be a major step forward,” Canfin said.

Hedge funds and other investors have been accused of using so-called naked CDS to bet on falls in government bond prices.

A naked CDS is where the person buying the CDS does not own the underlying sovereign debt being “insured” against.

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Commodities Speculation Should Be Restricted, EU’s Barnier Says

By Ben Moshinsky
Nov. 16 (Bloomberg) — Michel Barnier, the European Union’s financial services commissioner, said he would seek to limit “risk exposures” derived from “agricultural products.”

Commodity speculation “can only lead to further disasters,” Barnier said in a speech in Brussels today.

The European Commission, the 27-nation EU’s executive, has targeted excessive market speculation in commodities which it blames for making prices more volatile. Wheat traded in Chicago, a global benchmark, almost doubled in price between July and September as a drought in Russia, flooding in Canada and parched fields in Kazakhstan and the European Union, ruined crops. Dacian Ciolos, the EU’s agriculture commissioner, has said that price spike was “disproportionate.”

Barnier met earlier this month with U.S. officials including Gary Gensler, chairman of the Commodity Futures Trading Commission, and Craig Donohue, chief executive officer of CME Group Inc., the world’s largest futures market.