WASHINGTON -(Dow Jones)- The U.S. commodity futures regulator Tuesday said ICE Futures Europe has agreed to make permanent position and accountability limits for some of its U.S.-traded crude contracts.

Following intense scrutiny and censure by Congress over skyrocketing oil prices, the U.S. Commodity Futures Trading Commission also said it would require daily large trader reports, and similar position and accountability limits from other foreign exchanges.

Many in Congress have criticized the agency for not doing enough to rein in what they believe is rampant speculation contributing to record energy prices.

"This combination of enhanced information data and additional market controls will help the CFTC in its surveillance of its regulated domestic exchanges," while preserving the integrity of its cross-border cooperation with other regulators, acting CFTC Chairman Walter Lukken said in prepared testimony.

Foreign exchanges have been exempt from the many of the rules that the New York Mercantile Exchange (NMX) has been regulated under. The new agreement, made in consultation with the U.K.'s Financial Services Authority, would bring the two exchanges closer to regulation parity.

Lukken, along with top industry officials from the parent company of ICE Futures Europe, the IntercontinentalExchange (NYSE:ICE) (ICE), its competitor, Nymex, and the Chicago Mercantile Exchange (NYSE:CME) (CME), Tuesday testified before a special Senate committee exploring oversight and resources for the agency.

The CFTC action follows rebuke by Congress, which has ratcheted up its efforts to regulate oil-markets trading. Several of the most powerful U.S. senators and representatives have introduced proposals that would give more money and power to the agency.

In the past several weeks, the CFTC has announced a raft of investigations and new initiatives targeting speculation, the role of financial participants in current prices and the potential for market manipulation.

Lukken also said the agency was studying the impact of swaps deals and index trading in the commodity markets and would report back to Congress by Sept. 15.

The agency also said the massive increase in commodity trading, the growing complexity of the market and an aging CFTC workforce meant that it was just able to maintain a business status quo.

"This agency's lack of funding over the course of many years has had a negative impact on our staffing situation, rendering it unsustainable for the long run," Lukken said.

"Given our staffing numbers, the agency is working beyond its steady state capacity and is unable to sustain the current situation for much longer without being forced to make...choices about which critical projects should be completed and which ones will be delayed," the acting chairman said in his testimony.

The agency was now requesting a 20% rise in its funding for the next fiscal year to $157 million, from $130 million previously requested.

By Ian Talley, Dow Jones Newswires, 202-862-9285; ian.talley@dowjones.com

    (END) Dow Jones Newswires   06-17-08 1045   Copyright (c) 2008 Dow Jones & Company, Inc.