Stop Excessive Energy Speculation Act of 2008
The Stop Excessive Energy Speculation Act of 2008 was introduced by Senate Majority Leader Harry Reid, D-Nev., on July 15 in response to a surge in energy prices. It would have required the CFTC to tighten position limits on energy futures, impose reporting requirements on foreign futures exchanges, create a new definition of “legitimate” hedging transactions, and eliminate "excessive" speculation in energy markets.
The Futures Industry Association, along with SIFMA, ISDA, the Financial Services Roundtable and the Financial Services Forum, helped to defeat the bill, aka S. 3263, in July of 2008. In a letter sent to members of the Senate on July 25, just ahead of an important vote, the five groups urged the Senate to oppose the bill, saying it would restrict investment in energy futures, make hedging more expensive, and force trading operations overseas.
During the subsequent vote on July 25, the Senate Democratic leadership was unable to win enough votes to proceed with the bill, and it was set aside until after the summer recess.
- Letter to Senate. Futures Industry Association.