The chief regulator for the US commodity futures industry on Monday said it would prepare a report by mid-September on the role that commodity indices are playing in the surge in energy prices.

Walter Lukken, acting chairman of the Commodity Futures Trading Commission, told legislators from the House energy and commerce committee that his agency would produce a study “regarding the scope of commodity index trading in the futures market and recommendations for improved practices and control, should they be required”.

Mr Lukken’s pledge came amid mounting pressure in Washington for legislators to agree on tighter rules governing investments in commodity futures contracts, such as higher margin requirements. ... Read full article