What sparked the current controversy at the CFTC?
A2: Bart Chilton, one of four appointed CFTC commissioners, told the Wall Street Journal that the CFTC would be releasing a report in August that would contradict its 2008 report on speculators and oil prices, which determined that market fundamentals—supply and demand—were the dominant factors in the run-up of crude prices from 2002 to 2008. Chilton noted that the 2008 report was based on “deeply flawed data.” However, Gary Chensler, current CFTC chairman, has more recently countered that “… it is inappropriate to speculate on data that the Commission will be releasing in the future—data that none of the Commissioners has seen. News reports that the CFTC will release a study reversing the agency’s position on energy speculation are both premature and inaccurate.” Q3: What’s the context here? A3: In 2000, Congress passed the Commodity Futures Modernization Act, which deregulated much of the derivatives (futures, options, etc.) sector, including the credit default swaps (CDSs) that have
