Magazine article Modern Trader

FIA Outraged over Leaked Info

Magazine article Modern Trader

FIA Outraged over Leaked Info

Article excerpt

In August confidential information on crude oil futures trading positions from the Commodity Futures Trading Commission (CFTC) dating back to the summer of 2008 was leaked to The Wall Street Journal, causing the Futures Industry Association (FIA) to ask the CFTC to conduct an investigation to determine if any laws or regulations were violated.

The source of the leak is no mystery as Sen. Bernie Sanders (I-Vermont) proudly claimed responsibility in a statement he made to Reuters. Sanders, who has been a consistent proponent of the notion that speculators caused the 2008 spike in crude oil prices, wrote, "The CFTC has kept this information hidden from the American public for nearly three years. This is an outrage."

The FIA expressed some of its own outrage in a letter it sent to the CFTC. "The members of the (FIA) were shocked and outraged by the disclosure of confidential data on derivatives market positions published recently."

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The letter went on to say the leak "poses a serious threat to the confidence of market participants in the CFTC's ability to protect proprietary information."

CME Group supported the FIA position in a statement made to Futures. "We were disappointed in this incident that involved the intentional leak of confidential regulatory information regarding the identity of specific market participants and their trading positions in U.S. futures markets. Instances like these raise market participants' concerns over the government's ability to maintain strict confidentiality of regulatory information and customer trading information. …

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