1 SEP 2010
(BRUSSELS) - Europe warned on Tuesday of moves to rein in commodity derivatives trading under a French-led drive to tame price distortions for raw materials ranging from oil to grain.
France launched the onslaught, calling on the European Union and the Group of 20 countries to take urgent steps to draft new common rules after a summer of fears about the fallout from soaring grain prices.
Simultaneously, the EU commissioner responsible for writing the rules governing all financial trading, former French foreign and agriculture minister Michel Barnier, said he "shares fully" the concerns in Paris.
Barnier told AFP that the "sometimes brutal" evolution of prices in commodities markets would be tackled in a series of proposals he will table to EU member states and the European parliament next month.
He said derivatives trading in energy, metals and agricultural products needs to be controlled "at a European level and a world level."
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