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CFTC to start anew this month in devising commodity position limits
From Reuters
Wednesday, August 11, 2010
http://www.reuters.com/article/idUSN1123245120100811
WASHINGTON -- The U.S. Commodity Futures Trading Commission will formally withdraw in coming days its proposed position limit rule for energy markets as it prepares to "repropose" new speculative curbs, Chairman Gary Gensler said on Wednesday.
The Wall Street reform law mandates the CFTC to impose position limits for all commodities -- not just energy contracts -- and across both exchange-traded and over-the-counter markets.
"We decided that we'll need to repropose a rule," Gensler told reporters. He said the CFTC would not need to start from scratch but will build on what he described as a "thoughtfully put together" rule as well as the more than 8,000 comments it received on the proposal earlier this year.
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Prophecy to Become Coal Producer This Year
with 1.5 Billion Tonnes of Resource
Prophecy Resource Corp. (TSX.V: PCY) announced on May 11 that it has entered into a mine services agreement with Leighton Asia Ltd. to begin coal production this year. Production will begin with a 250,000-tonne starter pit as planned in August, with production advancing to 2 million tonnes per year in 2011. Prophecy is fully funded to production and its management team includes John Morganti, Arnold Armstrong, and Rob McEwen.
For Prophecy's complete press release about its production plans, please visit:
http://www.prophecyresource.com/news_2010_may11.php
The new law gives the CFTC 180 days to have the new rule in place for energy and metals markets and 270 days for limits for agricultural markets.
It's one of 30 areas requiring detailed rules from the CFTC.
"Our priority is complying with the statute. We don't have the luxury to triage," Gensler said. "We have to finish in 12 months."
Near the top of its list are rules to cover swaps done before the law was in place, and to finalize proposed regulations for retail foreign exchange transactions, he said.
"I would anticipate throughout the fall ... that we would be having a series of proposed rules," he said.
"Sometimes the ones that will come early in the fall will just be the ones that we happened to have gotten to and they were less complicated or easier. The more difficult ones will probably be a little later," he said.
The CFTC will also hold open public meetings with the Securities and Exchange Commission to gather ideas on how they should write rules to implement some of the new reforms for derivatives markets, beginning as early as late August.
The meetings will cover rules for data collection, real-time reporting of swaps, and new "swap execution facilities" required under the new law, Gensler said.
The CFTC has encouraged public comment on its rule-making areas through its Internet site and plans to solicit more comment from the public through a notice in the public register in the next week, Gensler said.
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Sona Resources Expects Positive Cash Flow from Blackdome,
Plans Aggressive Exploration of Elizabeth Gold Property
On May 18, 2010, Sona Resources Corp. (TSXV: SYS, Frankfurt: QS7) announced the release of a preliminary economic assessment for gold production at its flagship Blackdome and Elizabeth properties in British Columbia.
Sona Executive Chairman Nick Ferris says: "We view this as a baseline scenario for gold production. The project is highly sensitive to the price of gold. A conservative valuation of gold at $1,093 per ounce would result in a pre-tax cash flow of $54 million. The assessment indicates that underground mining at the two sites would recover 183,600 ounces of gold and 62,500 ounces of silver. Permitting and infrastructure are already in place for processing ore at the Blackdome mill, with a 200-tonne per day throughput over an eight-year mine life. Our near-term goal is to continue aggressive exploration at Elizabeth and develop a million-plus-ounce gold resource, commencing production in 2013."
For complete information on Sona Resources Corp. please visit: www.SonaResources.com
