CME Group, the world's largest and most diverse derivatives exchange, announced that CME Group Vice Chairman Charlie Carey will appear before the U.S. Senate Permanent Subcommittee on Investigations today to discuss the CBOT wheat futures contract.
"We fully support measures to retain transparency and ensure the integrity and utility of our markets. We have been working with the Commodity Futures Trading Commission and industry participants to develop solutions to improve convergence in the wheat contract," Carey said. "There is a great deal of misinformation about the role of market users, such as index funds and speculators, as well as misinterpretations of what is occurring in our markets. Four separate studies in the past year and numerous economists support the fact that market fundamentals, including supply and demand, weather, currency valuations and other factors, have been the primary drivers of price volatility."
The hearing is scheduled for 2:30 p.m. Eastern time Tuesday in the Dirksen Senate Office Building. The testimony will be available also at 2:30 p.m.