LME chief pleads for right to carry on shorting
Friday 03 December 2010
The drive for regulation could be motivated by political concerns and risks ignoring the underlying factors that drive commodity prices, according to the chief executive of the London Metal Exchange.
Martin Abbott also defended the much-maligned practice of short selling, where market participants seek to profit from falling prices.
He told Parliament's Treasury Select Committee: "There is a sense that high prices of certain commodities, particularly for fuel, for agricultural commodities, is de facto a bad thing. Whereas in fact, it may simply be a reflection of reality. If regulation is aiming in fact to control outcomes rather than control the means to which prices are discovered, then it is off-target."
Short selling was essential to commodity markets, he said. "It is not possible for commodity markets or for their participants to function without freely available short selling. It is utterly essential to the commodity markets," he stressed.
Mr Abbott also weighed in on the European Securities and Markets Authority, the pan-European regulator which is due to be in place next year. "We have a concern about the level of UK representation on ESMA, were ESMA, in fact, to become the dominant regulatory body," he said.
- 1 Artist Jamie McCartney: How The Great Wall of Vagina is a stand against 'body fascism'
- 2 Katie Hopkins reveals fear she will die during brain surgery to cure epilepsy
- 3 Tom Cruise: Reporters banned from asking actor about Scientology
- 4 Dutch King Willem-Alexander declares the end of the welfare state
RideLondon 2015: Cyclist dies while climbing highest hill in Surrey during sportive
Katie Hopkins reveals fear she will die during brain surgery to cure epilepsy
'Gene drive': Scientists sound alarm over supercharged GM organisms which could spread in the wild and cause environmental disasters
Dutch King Willem-Alexander declares the end of the welfare state
Tom Cruise: Reporters banned from asking actor about Scientology
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
Jeremy Corbyn's anti-austerity agenda will harm poor, says Labour shadow Chancellor Chris Leslie
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
Calais crisis: The seven claims made about the migrants - and the reality
iJobs Money & Business
Up to 70k DOE: Guru Careers: We are seeking an experienced Financial Director ...
£11000 - £50000 per annum: Recruitment Genius: This financial company offer ma...
competitive + incentives + uncapped comms: SThree: Did you know? 98% of our di...
competitive: SThree: Did you know? 98% of our directors started with SThree as...