Managed Funds Association (MFA) says it is urging the US Senate to proceed with caution on legislation aimed at limiting investor participation in the energy futures markets. Richard H. Baker, MFA president and CEO, says the conclusions of the Interim Report on Crude Oil by the Interagency Task Force (ITF) on Commodity Markets prove that the rise in oil and gas prices are due to fundamentals, not speculation. Chaired by the Commodities Futures Trading Commission, the ITC found that “supply and demand factors provide the best explanation for the recent crude oil price increases.”
“The governments best economists found that speculators werent the cause of the increase in gas prices,” says Baker. “As a result, Congress should take no action that adversely disrupts futures markets and harms retirees, investors and academic institutions.”
MFA recently made available its “Analysis and Recommendations: The Investor in a Sound Futures Market.” The Analysis sets forth a series of recommendations designed to ensure economic growth and stability. Among the key recommend-ations by MFA are calls for measures to address market manipulation by appropriating funds to increase CFTC oversight, improve its information technology and data gathering capacity and hire more enforcement and surveillance staff.
MFA has long been a leader in taking proactive steps to maintain and enhance principles and values of the alternative investment industry. In November 2007, the association released its fourth version of Sound Practices for Hedge Fund Managers, the seminal resource for hedge fund managers seeking to foster a culture of compliance. The updated and enhanced Sound Practices is directly responsive to the Presidents Working Group on Financial Markets call for the hedge fund industry to establish standards of excellence for improved market discipline and enhanced vigilance through collaborative efforts among counterparties.