Oil industry executives and lawyers fear that the FTC's rule on wholesale oil market manipulation will include a vague standard of "reckless" manipulative conduct rather than requiring "specific intent" on the part of traders (AGM, 8. September, p4). Market participants say this could criminalise normal trading behaviour. And it would establish troublesome overlaps in jurisdiction between commodities regulator the CFTC and the FTC, with each applying different oil market manipulation standards. Oil industry lawyers are likely to issue legal challenges if the rule adopts the recklessness standard and establishes overlapping jurisdiction.
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