April 8, 2011 / 8:28 AM / 9 years ago

EU to back position limits on commods trade - sources

GODOLLO, Hungary (Reuters) - Position limits could soon be imposed on European traders in commodities markets, according to a proposal set to be approved by EU finance ministers on Saturday, EU sources said on Friday.

The proposal — which must be endorsed by EU finance ministers at an informal meeting near Budapest — calls for greater transparency in commodities markets and linked derivatives markets, one of the sources said.

It also aims to crack down on market abuses and give greater access to market regulators to information on traders and their positions.

“If necessary, these regulators must have the possibility to impose position limits. This is foreseen in the text (of the proposal),” the source said.

“France has pushed hard for this to be explicitly mentioned, because Paris wants to be able to use the document to take the proposal to the next G20 meeting,” the source added.

A second source confirmed that the document explicitly mentioned position limits, and was very confident that the proposal would be adopted as it stood.

Reporting by Julien Toyer, writing by Charlie Dunmore

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