The CME Group is expanding speculative position limits. Van Ahn and Company CEO Jim Emter is concerned with the increase in volatility that will go with the increase in positions held by traders. “We’re concerned this will bring greater transparency to the front-month markets and could hurt the back-end markets. Oftentimes, when we look at the 600 limits, this forces people to spread contracts out through the old and new crop. By expanding those, we may create circumstances like we see more front-end loaded trade.” Emter is concerned about the impact this will have on the deferred market. “This is a business move, from our vantage point, creating potential flow as a volume, but it may impact some of the relationships in the deferred market.”
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