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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 1289 Introduced in House (IH)]

110th CONGRESS
  2d Session
H. RES. 1289

Urging the President to direct the Commodity Futures Trading Commission 
    to work with the United Kingdom Financial Services Authority to 
   establish position limits on oil futures traded by traders on the 
Intercontinental Exchange that are similar to those established by the 
   Commodity Futures Trading Commission for traders on the New York 
                          Mercantile Exchange.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 19, 2008

  Mr. Shays (for himself and Mr. Perlmutter) submitted the following 
     resolution; which was referred to the Committee on Agriculture

_______________________________________________________________________

                               RESOLUTION

 
Urging the President to direct the Commodity Futures Trading Commission 
    to work with the United Kingdom Financial Services Authority to 
   establish position limits on oil futures traded by traders on the 
Intercontinental Exchange that are similar to those established by the 
   Commodity Futures Trading Commission for traders on the New York 
                          Mercantile Exchange.

Whereas, on June 16, 2008, the average retail price of gasoline in the United 
        States reached $4.134 per gallon, which is an increase of $1.077 per 
        gallon over one year ago, and has nearly doubled over the last three 
        years;
Whereas, on June 16, 2008, the cost of a barrel of crude oil on the New York 
        Mercantile Exchange (NYMEX) closed at $134.61;
Whereas increases in the price of crude oil are indicative of the United States' 
        need to affirm its commitment to renewable energy research and 
        development, and focus on reducing demand for oil by emphasizing 
        conservation;
Whereas the Commodity Futures Trading Commission currently imposes a limit of 
        20,000 crude oil contracts per month, not to exceed 3,000 contracts in 
        the last three days of trading in the spot month, on traders on the 
        futures exchanges of the NYMEX;
Whereas institutional investors can circumvent these position limits by trading 
        in swaps and derivatives products with the banks who have hedge 
        exemptions for such trading, and no position limits are imposed on 
        investors on the Intercontinental Exchange;
Whereas the Commodity Futures Trading Commission should regulate the over-the-
        counter derivatives and swaps exchanges in the same manner that the 
        NYMEX futures exchanges are regulated; and
Whereas many analysts believe speculative investment in oil futures has 
        contributed to recent oil price increases: Now, therefore, be it
    Resolved, That the House of Representatives--
            (1) urges the Commodity Futures Trading Commission to 
        require institutional investors to abide by position limits 
        already established for the greater crude oil trading 
        community; and
            (2) urges the President to direct the Commodity Futures 
        Trading Commission to work with the United Kingdom Financial 
        Services Authority to establish position limits on oil futures 
        traded by traders on the Intercontinental Exchange that are 
        similar to those established by the Commodity Futures Trading 
        Commission for traders on the New York Mercantile Exchange.
                                 <all>
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