CFTC’s Chilton Says ‘Thoughtful Review’ of Warehouses Needed
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A “thoughtful review” of commodity warehousing is needed after hearing from users about its effect on markets, according to Bart Chilton, a commissioner at the U.S. Commodity Futures Trading Commission.
The CFTC sent a letter about the issue, Chilton said by e-mail today, in response to questions from Bloomberg. The U.S. regulator asked companies not to destroy any documents relating to warehouses registered by exchanges such as the London Metal Exchange or Chicago Mercantile Exchange dating to January 2010, according to a copy of the letter obtained by Bloomberg. At least three warehouse operators received the letter, according to three people with direct knowledge of the matter.