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WASHINGTON, May 23 (Reuters) - Significantly raising margin requirements on oil futures trading at the New York Mercantile Exchange <NMX.N> would not rein in speculative investors and bring down crude prices, U.S. Energy Secretary Sam Bodman said on Friday.
Many U.S. lawmakers blame hedge funds, pension fund managers and other speculative investors for pushing up prices for crude oil and other commodities to record levels.
"I don't think that the margin requirements per se are going to have any impact on it," Bodman said in an interview on CNBC television.
Legislation is pending in the U.S. Senate that would require the Commodity Futures Trading Commission, which regulates NYMEX, to significantly raise the amount of money, or margin, that speculators have to put up to trade oil futures.
The bill does not specify how high margins should be increased, leaving it up to the CFTC to decide.
However, the CFTC has told Congress that, while more speculators are doing business in the futures markets, the agency has no evidence they have caused prices to rise.
When purchasing stocks, many brokerage firms require investors to have between 30 percent and 40 percent of the market value of the securities in margin accounts.
Margin requirements for futures are generally lower, less than 10 percent for many contracts, and often change depending on the volatility of the contracts.
Separately, Bodman said he supported broadening some regulatory powers of the CFTC, which this week was given new authority from Congress to monitor and collect more information on some of the energy trading going on in exempt commercial markets, such as the Intercontinental Exchange <ICE.N>. (Reporting by Tom Doggett; Editing by Walter Bagley) ((tom.doggett@thomsonreuters.com; + 1 202 898-8320; Reuters Messaging: tom.doggett.reuters.com@reuters.net)) Keywords: BODMAN OIL
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TOKYO, May 22 (Reuters) - Prime Minister Yasuo Fukuda said Japan should introduce a market for trading greenhouse gas emissions in five to 10 years to help the country fight global climate change, the Nikkei business daily said on Thursday.
"We need this in the next five to 10 years. Setting a price would encourage people to reduce (emissions)," Fukuda was quoted as saying by the Nikkei. The paper cited sources familiar with the details of Fukuda's Wednesday meeting with former Environment Minister Yoriko Kawaguchi and others.
Japan, the world's fifth-biggest emitter, is hosting a meeting of Group of Eight leaders in July and aims to discuss climate change there. Fukuda said in January the government would take measures to make Japan a low-carbon society.
Carbon dioxide is the main greenhouse gas blamed for global warming.
Newspapers have reported that Japan would seek to take leadership on the climate issue before the summit by setting a target to cut its own greenhouse gas emissions by 60-80 percent from current levels by 2050.
G8 leaders agreed to seriously consider the mid-century target at last year's summit in Germany, a proposal backed by Japan, the European Union and Canada.
Japan has called for a halving of global greenhouse gas emissions by 2050, with help from an overhaul of energy supply and development of innovative technologies.
"Now is important as we prepare for the year 2050. What we do in the next 10 years is important, and what we do in the next five years is even more critical if we consider upcoming international negotiations," Fukuda was quoted as saying.
"I will make a surprising proposal. Please wait and see," the Nikkei quoted Fukuda as saying.
NEW POLICY
Fukuda is expected to outline a new policy on climate change in June as his special adviser on global warming, Hiroshi Okuda, is set to hand in a report on discussions at his panel of experts and industry officials early in the month.
Okuda, also senior adviser at Toyota Motor Corp <7203.T>, is expected to play a role of mediator for industries with different interests as countries negotiate a U.N.-led climate pact to succeed the Kyoto Protocol, which expires in 2012.
Unlike the European Union, which imposes a cap-and-trade system to bind polluters to mandatory emissions limits, Japan has encouraged voluntary pledges from industries.
Some industries, such as steelmakers, oppose such a cap-and-trade scheme, saying already energy efficient companies would face a risk of unfair competition from overseas.
In addition to Okuda's panel, two other government panels have been discussing new green-policy measures, including the feasibility of an emissions market. (Reporting by Risa Maeda) ((risa.maeda@thomsonreuters.com; +81 3 6441 1856; Reuters Messaging: risa.maeda.reuters.com@reuters.net)) Keywords: CLIMATE/JAPAN
TOKYO, May 22 (Reuters) - Prime Minister Yasuo Fukuda said Japan should introduce a market for trading greenhouse gas emissions in five to 10 years to help the country fight global climate change, the Nikkei business daily said on Thursday.
"We need this in the next five to 10 years. Setting a price would encourage people to reduce (emissions)," Fukuda was quoted as saying by the Nikkei. The paper cited sources familiar with the details of Fukuda's Wednesday meeting with former Environment Minister Yoriko Kawaguchi and others.
Japan is hosting a meeting of Group of Eight leaders in July and aims to discuss climate change there. Fukuda said in January the government would take measures to make Japan a low-carbon society. Carbon dioxide is the main greenhouse gas blamed for global warming. (Reporting by Risa Maeda; Editing by Hugh Lawson) ((risa.maeda@thomsonreuters.com; +81 3 6441 1856; Reuters Messaging: risa.maeda.reuters.com@reuters.net)) Keywords: CLIMATE/JAPAN
NEW YORK, May 14 (Reuters) - The New York Mercantile Exchange <NMX.N> said on Wednesday it will increase margins on heating oil-related contracts starting at the close of business on Thursday.
"Margins for the first month of the heating oil, New York Harbor heating oil calendar swap and heating oil financial futures contracts will increase to $8,500 from $8,000 for clearing members, to $9,350 from $8,800 for members, and to $11,475 from $10,800 for customers," NYMEX said in a statement. Second-month margins will rise to $8,000 from $7,500 for clearing members. Margins for the second month will be increased to $8,800 from $8,250 for members, and to $10,800 from $10,125 for customers.
Margins for third through 11th months will be hiked to $7,250 from $6,750 for clearing members, to $7,975 from $7,425 for members, and to $9,788 from $9,113 for customers.
Margins for all other months will increase to $6,750 from $6,250 for clearing members, to $7,425 from $6,875 for members, and to $9,113 from $8,438 for customers.
The NYMEX miNY heating oil futures contract will see margins for the first month increased to $4,250 from $4,000 for clearing members, to $4,675 from $4,400 for members, and to $5,738 from $5,400 for customers.
Second month NYMEX miNY heating oil futures margins will rise to $4,000 from $3,750 for clearing members, to $4,400 from $4,125 for members, and to $5,400 from $5,063 for customers.
Third to 11th month futures margins will be hiked to $3,625 from $3,375 for clearing members, to $3,988 from $3,713 for members, and to $4,894 from $4,556 for customers.
Margins for all other months will rise to $3,375 from $3,125 for clearing members, to $3,713 from $3,438 for members, and to $4,556 from $4,219 for customers. (Reporting by Matthew Robinson; Editing by Christian Wiessner) ((matthew.robinson@thomsonreuters.com: +1 646 223 6052; Reuters Messaging: matthew.robinson.reuters.com@reuters.net)) Keywords: MARKETS ENERGY/NYMEX
SHANGHAI, May 12 (Reuters) - China's foreign exchange market in Shanghai was trading normally after tremors were felt in China's financial centre from a strong earthquake in southwestern China's Sichuan Province, the exchange said.
China's main stock market based in Shanghai also functioned normally until its usual closing time of 3 p.m. (0700 GMT), an exchange official said.
Some fund managers and brokers, however, reported their stock trading was affected after China's tallest building, the Jinmao Tower, and other highrise buildings in Shanghai were ordered to evacuate after the tremors were felt. (Reporting by Lu Jianxin; Editing by Edmund Klamann) ((jianxin.lu@reuters.com; +86 21 6104 1792)) Keywords: CHINA EARTHQUAKE/MARKETS
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