Frelinghuysen Supports CFTC Initiatives on Energy Price Manipulation
Rep. Rodney Frelinghuysen (NJ-11) today sent a letter to Chairman Walter Lukken of the Commodity Futures Trading Commission supporting the commission's efforts to increase transparency of the energy futures market.
A recent CFTC initiative announced the expansion of surveillance of international crude oil trades; increased reporting requirements and examinations of energy trades; and the continuation of its investigation into the practices surrounding energy futures trading.
"Every American has been affected by the rapidly rising energy costs." said Frelinghuysen. "I commend the efforts of the Commodity Futures Trading Commission for ensuring that energy prices are not being illegally or unethically manipulated for financial gain."
In April, Rep. Frelinghuysen introduced H.R. 5768, the CFTC Improvement Act. The legislation would expand the CFTC's oversight into electronic energy trades. Electronic energy markets are currently exempt from their oversight.
Under Frelinghuysen's proposal, electronic energy commodities will have the same oversight as other commodities. H.R. 5768 would address a significant legal loophole and allow the CFTC to continue their oversight efforts into trades made online.