david: commodities futures trading commission set to vote on new rules protecting your investment. we can use that after mf global. we'll be talking to bart chilton on the regulation of how this can impact your money. liz: but first, what drove the market in a different direction today in the data download because most of it was down and ended to the upside. the stocks rallied with all three major indices eking out gains to and in the green. the dow rallied nearly 100 points in the last hour. technology and materials pretty much the top performers. it was just technology, everything else was down. copper hitting its lowest level in more than a month after bigger than expected drop in japan exports. the metal used in construction of power closed down nearly 1%. natural gas falling about 4% after three straight trading days of gains, profits at the aw 2005. northeast and midwest forecast for the week pushing press prices a bit lower. david: telling us what he thinks europe is on the right track about to make a comeback. scott at the cme, even though the market turned around, the vix

commodity futures that speculators can hold. it makes it easier for the commodities future trading commission to investigate suspected market manipulationthe agency to regulate energy derivatives, which enron used to drive up the price of electricity in california. [ticking] coming up, a herculean effort to find oil in a desert wilderness. >> the logistics are impossible. the first thing we had to do is build our own road in order to access this field. >> just to get here. >> just to get here. once that was done, we had to remove 100 million cubic feet of sand just to make the runway. >> that's when 60 minutes on cnbc returns. [ticking] two years ago, the people of bp made a commitment to the gulf. and every day since, we've worked hard to keep it. bp has paid over twenty-three billion dollars to help people and businesses who were affected, and to cover cleanup costs. today, the beaches and gulf are open for everyone to enjoy -- and many areas are reporting their best tourism seasons in years. we've shared what we've learned with governments and across the industry so we can all produce energy more safely. i want you to know, there's a

commodity futures that speculators can hold. it makes it easier for the commodities future trading commission to investigate suspected market manipulationand it empowers the agency to regulate energy derivatives, which enron used to drive up the price of electricity in california. [ticking] coming up, a herculean effort to find oil in a desert wilderness. >> the logistics are impossible. the first thing we had to do is build our own road in order to access this field. >> just to get here. >> just to get here. once that was done, we had to remove 100 million cubic feet of sand just to make the runway. >> that's when 60 minutes on cnbc returns. [ticking] [ horn honks ] hey, it's sandra -- from accounting. peter. i can see that you're busy... but you were gonna help us crunch the numbers for accounts receivable today. i mean i know that this is important. well, both are important. let's be clear. they are but this is important too. [ man ] the receivables. [ male announcer ] michelin knows it's better for xerox to help manage their finance processing. so they can focus on keeping the world moving. with xerox, you're ready for real business

the securities and exchange commission in the united states and see if you see the commodities futures trading commission and course congress to who could have the absolute weakest regulation if you do that you're never going to have regulatory leaders with backbones and you're never going to have staffers who often have back both because why would you go to work for an entity that exists to serve the banks as opposed to serve the people good people will leave in those circumstances and so what you're seeing is the f.s.a. and by the way the bank of england continued to be the land of the invertebrates where if you have any backbone you're not allowed right while we are here in london we do the show in london because this race to the competition in laxity as you put it the race to the bottom who can be the absolute worst when it comes overseeing markets through london we had a i g lehman brothers bernie made up the london whale over j.p. morgan we learned about re hypothecation and. we're here in line in the part of the there is a big conference going on for labor and they want one the left wing party the

who is one of the regulators at the commodities futures trading commission texas hold'em time to fold them this was his keynote address of commissioner bart chilton before the two thousand and twelve allegro customer summit in dallas texas on october sixteenth and he said regarding high frequency trading max a few weeks ago the tokyo stock exchange closed due to technology problems we've seen a few contracts shut down for different periods of chicago in new york last month we've seen market volatility increase wildly natural gas plummeting eight percent in fifteen seconds last year one day silver plunge twelve percent in about as many minutes one energy trader lost one million dollars in one second in the second we saw a crude tumble three dollars a minute last month we continually see sharp rises and falls in precious metals there are numerous other instances and it's a safe bet that there will still be others. to see you have to see is correct but burchill to this day comes up whether it's the so over manipulation in london or the box office futures in the united states as name come

middle managers at the commodities futures trading commission it was not a top down decision this came from the middle and they were very very complicated letters asking for particular exemptions equating global trade and currencies to global trade global trade in grain the idea being that somehow if you're trading in currency that's the same thing is trading in grain because grain is just another could have just had so these people seen what happened to like thailand and you know when when when the global trading currency george soros made a fortune on this thing among others you know just just crashed that country i was there when the the cranes were stopped things were rusting buildings were half built for commie fell apart because they were trading in currencies in this highly speculative way you know you're you're talking about reason but what happened you know this is what he had every year there was a mania you know there's reason on the one side and there is mania on the other side and there was almost as if we could characterize this in the one nine hundred ninety s. as a mani

global regulator the commodities futures trading commission remember recused himself from the investigation because he worked at goldman with corus on now fighting on behalf of m.f. global customers this entire time still fighting is james capitulates who has a hedge fund is incidentally an attorney and he's also president and founder of the commodity customer coalition he joins us now to give us an update close to a year after m.f. global imploded and your world changed forever too yeah thanks for being on the show you're welcome thanks for having me yeah so james give us a little bit of an update in terms of how much money have you wes customers received back from m.f. global how much have u.k. customers received. customers who invested with m.f. global to then trade on u.s. futures exchanges have received eighty percent back which is great those who invested through the u.s. end of the book to trade on foreign futures exchanges have only received five percent back five per cent. and does that include people that had their funds hypothecated. i mean there's no differentiation between thos

interesting what i found is this this group that really set themselves up they went to the commodity futures trading commission and let's set ourselves up they've been drawing salaries to president of well over a million dollars a year and you cut his benefits as well but they are totally immune as well i found out from lawsuits it cost me probably fifty thousand dollars in legal fees to find out but i think this is. an important battle this organization is supposed to protect us they have it and they can just walk away from it they have more immunity than john cores and you're right it should be in an orange jumpsuit but the n.s.a. members but they'll never morry about that they have no responsibility and what do you think is the consequence of that these guys get money from the industry to function a you say they get cushy salaries and yet they can't be held accountable by the industry they regulate that is correct the law is real clear that a self regulatory agency can be sued even for gross negligence it's almost as though they are the government and you can't see the to the king so i think we have to come

over the house and failing to provide the funding to the sec and particularly to the commodity futures trading commissionwe complain that they didn't do enough about mf, and i agree, but they can't do that with no people. >> you're right. they really need resources over there at the sec. particularly with dodd frank. congressman, appreciate your time. >> we're going to miss you. >> barney frank joining us. >> nobody like him. nobody like barney in congress. >>> heading toward the close. about 25 minutes left in the session. the dow starting to move lower again. down 33 points. >> we have a guest coming up on this program that thinks facebook has bottomed. meanwhi meanwhile, the stock on the upside today. going mobile, shares a surging today. is facebook a better bet to monetize mobility than google? the trade coming up. >>> also, dan niles won big by betting against the stock. but now guess what he's doing. >> he's changing his tune. >> buying the stock. he's here to explain why. stay tuned. >>> facebook having its best day since the ipo back in may. jackie deangelis tracking the move. >> good afternoon.

commodity futures modernization act. and bring the otc derivatives market into the daylight. and working with the commodity futures trading commission, we have been writing rolls that fill out an entirely new regulatory regime, one that strengthens stability of our financial system. these rules do this by improving transparency and facilitating the centralized clearing of swaps, helping among other things to reduce that counterparty risk, enhancing investment protection through increased disclosure regarding security-based swap transactio transactions. and mitigating conflicts of interest of dealers and other major participants involved in security-based swaps. by promoting transparency, efficiency and stability, these frameworks in intended to foster a more nimble and competitive market, and enhance regulatory oversight and monitoring by facilitating improved access to comprehensive data on the security-based swap market. a report released by a major market participants -- purchase but lester underscores the benefits of bringing financial fundamentals into this market. it predicts the market for interest rate and credit default swa

closing the gaps created by the commodity future modernization act and bringing the derifetives market into the daylight, and working with the commodity futures trading commission, we have been writing rules that fill out an entirely new regulatory regime, one that strengthens the stability of our financial system. these rules do this by improving transparency and facilitating the centralized clearing of security based swaps, helping to reduce the counter-party risk, enhaasing investor protection with disclosure and mitigating conflicts of interest of dealers and other major participants. by promoting transparency, efficiency and stability, this framework is intended to foster a more him inle and competitive market, and enhance oversight and monitoring by facilitating access to information. a report last year underscores the benefit of bringing the financial fundamentals into the market. it predicts the market for interest rate and credit default swap will grow by more than 10% by 2013. quote, notional values and derivatives are expected to rise due to increased transparency and counter-party risk mitigation. instead of transacting business behind closed doors,

we also have a commodities- futures trading commission that oversees this and many folks looking intoarkets to make sure their transparent. it really is a global marketplace driven by supply and demand globally. the speculators bring their knowledge and best expectations about supply and demand into the market but at the end of the day, host: more from the article this past thursday in "the washington times." - we will take a look at a little bit of that exchange between the governor and the president that will come back and continue our conversation. [video clip] >> that's not what you have done the last four years. that is the problem. in the last four years, you cut permits and licenses on federal land and federal waters in have. >> not true. >> how much did you cut them by? >> we have produced more oil -- >> how much have you cut licenses and permits on federal land? >> there were a whole bunch of oil companies -- >> a question -- >> i'm happy to answer the question. here is what happens -- you had a whole bunch of oil companies who had leases on public lands that they were not us

the gaps created by the commodity futures modernization act and bringing the otc derivatives market into the daylight. and working with the commodities future trading commission, we have been writing rolls that fill out an entirely new regulatory regime, one that strengthens the stability of our financial system. these rules do this by improving transparency and facilitating a centralized clarinet security based swaps, helping among other things to reduce the counterparty risk, enhancing investor protection through increased disclosure, regarding security based swap transactions and mitigating conflicts of interests of dealers and other major participants involved in security based swaps. by promoting transparency, efficiency and stability, the framework is intended to foster a more nimble in competitive market and enhance regulatory oversight and monitoring by facilitating improved access to comprehensive data on the security based swap market. a report released by a major market participant last year underscores the benefits of bringing financial fundamentals into this market. it predicts that the market for interest rate and credit default swap's will grow

that were created by the commodity future modernization act and bringing the otc derivatives market into the daylight. and working with the commodity futures trading commissionbeen writing rules that fill out an entirely new regulatory regime, one that strengthens and stability of our financial system. these rules do this by improving transparency and facilitating a centralized clearing of security based swaps, helping them up the other things to reduce the counterparty risks, enhancing investor protections to increase disclosure regarding security based swaps transactions and mitigating conflicts of interest with dealers and other major participants involved in security based swaps. i promoting transparency efficiency and stability this framework is intended to foster a more nimble and competitive market and enhance regulatory oversight and monitoring by facilitating improved access to comprehensive data on the security based swaps market. a report released by major market participants last year underscores the benefit to bringing financial fundamentals into this market. it predicts that the market of interest rate and credit default swaps will grow by more

coming up at 8:10, commodities futures trading commission going to be our special guest today. >> squawkgetting started. we have newsmakers. up next, he's walk to the set right now, steeple financial chairman and ceo. >> you did it. that was good. between listening to the numbers... ...and listening to your instinct. duff & phelps finds the sweet spot that powers sound decisions. duff & phelps financial advisory and investment banking services. if we want to improve our schools... ... what should we invest in? maybe new buildings? what about updated equipment? they can help, but recent research shows... ... nothing transforms schools like investing in advanced teacher education. let's build a strong foundation. let's invest in our teachers so they can inspire our students. let's solve this. mike rowe here at a ford tell me fiona, who's having a big tire event? your ford dealer. who has 11 major brands to choose from? your ford dealer. who's offering a rebate? your ford dealer. who has the low price tire guarantee... affording peace of mind to anyone who might be in the market for a new s

closing the gap created by the commodity futures modernization act and bringing the otc derivatives market into the daylight. and, working with the commodity futures trading commissionbeen writing rules that fill out an entirely new regulatory regime -- one that strengthens the stability of our financial system. these rules do this by improving transparency and facilitating the centralized clearing of security-based swaps, helping, among other things, to reduce counterparty risk, enhancing investor protection through increased disclosure regarding security-based swap transactions, and mitigating conflicts of interest of dealers and other major participants involved in security-based swaps. by promoting transparency, efficiency, and stability, this framework is intended to foster a more nimble and competitive market and enhance regulatory oversight and monitoring by facilitating improved access to comprehensive data on the security-based swap market. a report released by a major market participant last year underscores the benefits of bringing financial fundamentals into this market, it predicts that the market for interest rate and credit default swaps will grow by

every week the, it is future trading commission compiles data and issues a report on the net open positions of commoditys called the commitments of traders report and they identify traders as being long or short while also breaking them into three categories -- large speculator, small speculator and commercial hedger. keep those in mind to be we have all this data. who is really batting which way on oil? the largest speculative group is made up of managed commodity funds and superrich individuals who speculate on oil. not to hedge. these guys refer to themselves as the smart money but there is not a lot of evidence that supports that appellation. they have deeper pockets than smaller speculators. what do they tell garner? it can be extremely helpful identifying overcrowded trades, meaning potentially bad trades because the crowd is already too large to be right. garner sees a very overcrowded trade. this large spec is green. the commitments report friday painted a picture of a speculative community that's still significantly long the crude oil market, despite the correction from over $100 a barrel at $9