The Commodity Futures Trading Commission's reauthorization is on schedule as the House Agriculture Committee expresses approval.
House Agriculture Committee Chairman Frank D. Lucas issues a statement saying the multi-year process of reauthorizing the CFTC gave the committee an opportunity to review the agency's operations, examine the pressing issues facing the futures and derivatives markets, evaluate how regulations are impacting end-users and the agricultural community, and determine how best to protect customer funds while helping to restore confidence in our markets.
"This process also allowed the committee to take stock of past events, such as the passage of the Dodd-Frank Act of 2010, the ensuing rulemaking process, and the failures of MF Global and PFG Best," Lucas said. "It is impossible to consider reauthorizing the CFTC and the future of the CFTC without recognizing the impact of these events on the agency and its response to them."
H.R. 4413 addresses some of the concerns we have heard over the past couple of years from a variety of stakeholders, especially our agricultural producers and end-users. Our efforts will increase certainty in the marketplace, improve customer protections, and provide a more balanced approach to regulations impacting job creators.
Agriculture Committee Ranking Member Collin C. Peterson said, “I’m not a big fan of regulations but following the financial collapse it became clear that we needed to rein in some of the risky behavior that had been taking place and increase marketplace transparency. Additionally, the failures of MF Global and Peregrine Financial have again shown that there is more that can be done.”
“While the rule-making process has been confusing and longer than I would have liked, that is no reason to dismantle Dodd-Frank, as some in Congress have suggested. I believe H.R. 4413 is reasonable legislation that ensures a well-functioning CFTC, regulates financial entities dealing in the swaps market, and allows end-users to continue using derivatives to hedge the risks associated with their underlying business.”
Also, the FIA issued a statement in response to the House Agriculture Committee’s voice vote on H.R. 4413, a bill which reauthorizes the Commodity Futures Trading Commission through September 2018.
“FIA commends the House Agriculture Committee for its continued bi-partisan approach to developing thoughtful legislation. While the process of enacting these statutory changes is far from complete, such thoughtful coordination among the various political interests is critical to ensuring that the final product yields a balanced outcome,” the statement read.
The legislation also includes provisions to better protect customer assets, it revises the organizational and operational requirements of the CFTC staff, and it provides regulatory relief to end-users of derivatives.