Thursday, March 25, 2010

Limits on Metals Trading Harmful?

Metal Trading Limits Needed?

A number of industry pros say if limits on metal trading are imposed on the market, business will probably just go overseas, making the move only harmful in America, and doing nothing to change the alleged effects of letting things go on as the have been.

Others contend the metals market can't simply be considered a market like energy, as they are completely different and the metals futures market some say, hasn't had excessive manipulation to warrant these types of major changes.

Even with normal trading, according to traders the big banks and financial institutions can disrupt a market just by making huge trades, whether the purpose was manipulation or not.

It's not even agreed upon yet in any market whether speculative trading causes price volatility, and to simply impose limitations because of unproven theories or possible future scenarios doesn't justify the real risk, which is regulators themselves being the worst market manipulators, based on taking actions on which aren't proven need to be instituted.

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