Officials at the Commodity Futures Trading Commission are concerned about commodity bets by non-U.S. subsidiaries established by mutual funds. The CFTC has proposed rules that would enhance oversight of the funds that invest in commodities and currencies through their offshore subsidiaries. The CFTC needs to "close the regulatory gap that allows some registered companies to offer futures-only products outside of the commission's jurisdiction, especially its anti-fraud authorities," said Scott O'Malia, a member of the commission.

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