Sunday, June 6, 2010
(click on image to enlarge)
At the recent Dairy Industry Advisory Committee (DIAC) meeting a representative of CME gave a presentation: http://www.fsa.usda.gov/Internet/FSA_File/1_perterson_cme_diac_jun_rev.pdf
In spite of how the name might appear to be spelled in the above link, the representative was actually, Paul E. Peterson.
The CME always has the excuse they do not control how people might use the information.
However, the reference to the GAO study: http://www.gao.gov/new.items/d07707.pdf is outright misleading. On page one, the GAO states, "Market Oversight Has Increased, but Concerns Remain about Potential Manipulation"
But, although he never brought it up, the CFTC did find evidence of manipulation in its settlement with DFA. DFA even violated CME rule and never seems to have had a slap on the wrist from the CME.
Look, we have just had the block price fall to near support. The players Jerome and Mullins on the seller side have no interest in farmers getting a fair milk price. On the buying side predominantly,is Schreiber. Where is the countervailing force?
To call the CME a market is one thing. For the CME to actually be a market is quite another. But, what is the difference to political hacks?