CITIZEN POWER ALLIANCE

As gas prices continue to soar, Congress is preparing to rein in speculative trading in energy futures markets by major institutional investors and hedge funds, which is seen as a key factor in driving up oil prices.

Legislation introduced Friday by Sens. Dianne Feinstein, D-Calif., and Ted Stevens, R-Alaska, would require the Commodity Futures Trading Commission to set limits on how much these investors - including pension and retirements funds - can invest in certain commodity markets.

The commission already sets limits on the holdings any one investor can have in a commodity to prevent speculation. But many larger institutional investors have exploited an exemption that allows them to bypass those limits if they make the trades through dealers or brokers.

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