Wednesday, July 29, 2009

Goldman to CFTC: Limiting speculation could be disruptive to markets

Bloomberg:

Disrupting Liquidity

“Some of the courses of action that have been proposed not only will fail to address the perceived harms but also will have unintended consequences that may be disruptive to liquidity and the markets generally,” said Casturo, who is responsible for risk management at Goldman Sachs’s commodity index business.

Casturo said increased participation in commodity markets by financial investors has helped liquidity and improved price discovery.

Or improved Goldman's profits?

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