[kach22i]

'Enron loophole' enables oil speculation
http://www.washingtontimes.com/news/2008/jun/24/enron-loophole-keeps-oil-speculation-unleashed/

The commodity commission imposes minimal standards on speculators in New York and allows as much as 30 percent of oil trading to escape U.S. regulation altogether by exempting trades routed through overseas electronic exchanges. The commission has given control over those transactions to regulators in London and Dubai who have been granted jurisdiction over the leading U.S. oil contract for West Texas Intermediate crude.

The foreign exchanges gained control over oil trading through the Enron loophole, which granted an exemption from regulation to electronic energy trading, which was a small part of the market in 2000. But since that time, electronic trading has burgeoned to the point that even the New York exchange last year sought to join those escaping regulation by teaming up with the Dubai Mercantile Exchange.

"I'm sure that American consumers will take little comfort that they are being protected from manipulation and excessive speculation driving up gas prices - not by U.S. regulators but by the Dubai government," said Michael Greenberger, a University of Maryland law professor and former head of the commodity commission's division of trading.

Yes, back in 2000 Bill Clinton signed it..............



Closing Enron Loophole Would Drop Oil Prices 25% - 50% Overnight
http://www.pensitoreview.com/2008/06/22/closing-enron-loophole-would-drop-oil-prices/

The Enron Loophole is the nickname for a provision written into the Commodity Futures Modernization Act (CFMA) of 2000 that was drafted by lobbyists for Enron and inserted in the bill by then Sen. Phil Gramm (R-Texas) that deregulated an aspect of the market Enron sought to exploit with its “Enron On-Line” trading program, the first Internet-based commodities transaction system. Phil Gramm is now a key economic adviser for the John McCain campaign.