Drivers

House Approves Bill to Curb Energy Market Speculation

July 01, 2010

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The U.S. House of Representatives has passed a bill that includes major reforms to the derivatives markets
The trucking industry believes speculation in the energy markets may be partly to blame for volatile diesel prices. (Photo by Ryder)
The trucking industry believes speculation in the energy markets may be partly to blame for volatile diesel prices. (Photo by Ryder)
, according to the American Trucking Associations.

The Wall Street Reform and Consumer Protection Act, which passed by a vote of 237-192, includes ATA-supported provisions to increase transparency by requiring previously unregulated over-the-counter trades to be traded on public exchanges and to require the Commodity Futures Trading Commission to set aggregate speculative position limits.

The latest bill is the House's version of the American Financial Stability Act, which was passed by the Senate in May. The House had to reconcile the differences between the two versions. The Senate will now take up the legislation, but it is not expected to do so until after the July 4 recess.

According to the ATA, the trucking industry has been negatively impacted by volatile diesel prices, caused in part by excessive speculation in the oil derivatives markets. The inclusion of derivatives in the legislation would help address that problem.

"Diesel fuel is the lifeblood of the trucking industry, and sudden fluctuations in operating expenses, especially fuel, can devastate trucking companies," said Rich Moskowitz, ATA vice president.

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