Advanced Search
MyIDEAS: Login

Index Manipulation, the CFTC, and the Inanity of DiPlacido


Author Info

  • Kleit, Andrew N.
Registered author(s):


    Commodity markets are designed to enhance the flow of commoditiesand reduce risks for both buyers and sellers. Unfortunately, these marketscan be open to market manipulation, with economic actors functioning todistort markets and gain profits from engaging in activities that distortprices. This issue has increased in prominence over the last several yearsdue to concerns about the manipulation of various energy markets. The nature of market manipulation, the role of the primary enforcer ofsuch rules -- the Commodity Futures Trading Commission (CFTC), and itsrecent decision in DiPlacido are reviewed in this paper. The CFTC decision demonstrates its deficient understanding of both manipulationlaw and the actual workings of commodity markets. In particular, the CFTC appears to have no ability to discern the difference between procompetitivetrading according to supply-and-demand forces, and themarket manipulation that destroys markets. This raises significantquestions about whether the CFTC, the designated expert agency in thisarea, can be trusted to protect commodity markets from manipulation.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL:
    Download Restriction: no

    Bibliographic Info

    Paper provided by Regulation2point0 in its series Working paper with number 95.

    as in new window
    Date of creation: Feb 2009
    Date of revision:
    Handle: RePEc:reg:wpaper:95

    Contact details of provider:
    Web page:

    Related research



    No references listed on IDEAS
    You can help add them by filling out this form.



    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:reg:wpaper:95. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Archive Maintainer).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.