Changes to commodities regulations expected: report

NEW YORK (Reuters) - The U.S. commodity markets' chief regulator will unveil policy changes next week meant to address public and political concerns that market malfunctions may be contributing to rising food and energy prices, The New York Times reported on Saturday.

Citing people who have been briefed about the agency's plans, the Times said that the new measures would be announced by the Commodity Futures Trading Commission, which oversees exchanges central to the establishment of prices for commodities ranging from corn to crude oil worldwide.

Facing mounting political pressure and farm industry demands, the CFTC is expected to outline measures to address the role played by new financial investors in the futures markets, the Times said, in particular those who invest through commodity index funds, which have grown from a $13 billion stake in 2003 to some $250 billion this year, it said.

Index funds differ from traditional commodity investors in that they do not sell commodity futures, but only buy them, the Times said. Critics say this has helped drive up commodity prices artificially.

But the newspaper said the new steps may fall short of sweeping measures sought by the index funds' critics. The people who spoke of the new measures discussed them on condition of anonymity because the plans are not yet finalized.

(Writing by Christopher Michaud; editing by Patricia Zengerle)