Ag Committee Approves Bipartisan Legislation to Reauthorize and Improve the Commodity Futures Trading Commission
The House Agriculture Committee approved H.R. 4413, the Customer Protection and End-User Relief Act, by voice vote.
Bipartisan Measure Increasing Market Transparency Passes by Voice Vote
WASHINGTON - Today, the House Agriculture Committee approved a bipartisan measure to increase transparency, oversight, and anti-manipulation authority over futures and options markets. By voice vote, the Committee approved draft language of The Commodity Markets Transparency and Accountability Act of 2008, sponsored by Agriculture Committee Chairman Collin C. Peterson of Minnesota.
“Although difficult to quantify, the potential influence of speculative trading on futures markets is a real issue, with the crude oil and agricultural markets seeing record volatility and a lack of convergence between futures and cash prices in some contracts” said Chairman Peterson. “Today’s action will bring much-needed transparency to commodities and futures markets, helping to restore the markets as a mechanism for price discovery and risk mitigation that work to benefit producers, processors and consumers.”
Provisions included in The Commodity Markets Transparency and Accountability Act would:
In addition to approving a manager’s amendment containing technical changes, the Committee also approved an amendment by Congressman Jim Marshall of Georgia that would change the proposed public disaggregation of index fund and other data in energy and agriculture markets from monthly to weekly. Both amendments were adopted by voice vote.
Congressional oversight of commodity futures trading is under the jurisdiction of the House Agriculture Committee, chaired by Congressman Peterson. The Committee held three days of hearings earlier this month reviewing CEA legislation. The Farm Bill, enacted into law earlier this year over the President’s veto, reauthorizes the chief regulator of these markets, the CFTC, through 2013.
The approved draft legislation, adopted amendments, and a section-by-section summary can be found on the House Agriculture Committee website.