[Knipps]

from Frank Lautenberg

Dear Mr. Knipping:



Thank you for contacting me about the "Stop Excessive Energy Speculation Act of 2008" (S. 3268). I am proud to be a cosponsor of this important legislation.



The "Stop Excessive Energy Speculation Act 2008," introduced by Senator Reid (D-NV), would help to reduce the amount of excessive speculation taking place in the oil markets and raising the price of gasoline at the pumps. This legislation would increase the resources and authority needed by the Commodities Futures Trading Commission (CFTC) to detect, prevent, and punish price manipulation and excessive speculation and give the CFTC emergency authority needed to rapidly implement the legislation. The "Stop Excessive Energy Speculation Act of 2008" would also strengthen the amount and quality of information available to the CFTC so that the Commission can better regulate all aspects of the energy futures markets.



In addition, this legislation would provide better transparency in the trading of energy derivatives by closing the so-called "London Loophole" so that oil traders using a foreign exchange cannot manipulate the price of oil in the United States. The "Stop Excessive Energy Speculation Act of 2008" would also require the CFTC to implement position limits to restrict excessive speculation that would still allow for reasonable trading for price discovery, liquidity, and legitimate hedging purposes. This important legislation will create necessary transparency in energy futures trading and help American consumers.



Please be assured that I will support this legislation when it comes before the full Senate for a vote. Thank you again for contacting me.

At least we know they're getting the message