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8 Yale J. on Reg. 281 (1991)
Manipulation of Commodity Futures Prices - The Unprosecutable Crime

handle is hein.journals/yjor8 and id is 287 raw text is: Manipulation of Commodity Futures Prices-The Unprosecutable Crime Jerry W. Markhamt The commodity futures market has been beset by large-scale market manipulations since its beginning. This article chronicles these manipulations to show that they threaten the economy and to demonstrate that all attempts to stop these manipulations have failed. Many commentators suggest that a redefinition of manipulation is the solution. Markham argues that enforcement of a redefined notion of manipulation would be inefficient and costly, and would ultimately be no more successful than earlier efforts. Instead, Markham argues for a more active Commodity Futures Trading Commission empowered not only to prohibit certain activities which, broadly construed, constitute manipulation, but also to adopt affirmative regulations which will help maintain a 'fair and orderly market. This more powerful Commission would require more resources than the current CFTC, but Markham argues that the additional cost would be more than offset by the increased efficiencies of reduced market manipulation. Introduction ......................................... 282 I. Historical Manipulation in the Commodity Futures Markets ..... 285 A. The Growth of Commodity Futures Trading and Its Role ..... 285 B. Early Manipulations .............................. 288 C. The FTC Study Reviews the Issue of Manipulation ......... 292 D. Early Legislation Fails to Prevent Manipulations .......... 298 II. The Commodity Exchange Act Proves to Be Ineffective in Dealing with M anipulation .................................. 313 A. The Commodity Exchange Authority Unsuccessfully Struggles with M anipulation ................................ 313 B. The 1968 Amendments Seek to Address the Manipulation Issue. 323 C. The 1968 Amendments Prove to be Ineffective ............ 328 tPartner, Rogers & Wells, Washington, D.C.; Adjunct Professor, Georgetown University Law Center; B.S. 1969, Western Kentucky University; J.D. 1971, University of Kentucky; L.L.M. 1974, Georgetown University. Mr. Markham has served as Chief Counsel of the Enforcement Division of the Commodity Futures Trading Commission (1975-1978), as Secretary and Counsel of the Chicago Board Options Exchange, Inc. (1974-1975), and as an attorney at the Securities and Exchange Commission (1972-1974). Copyright © 1991 by the Yale Journal on Regultion 281.

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