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.
Full Committee Passes CFTC Renewal by voice vote; three bills approved for House action
WASHINGTON – The House Committee on Agriculture today approved by voice vote a bipartisan measure to reauthorize the Commodity Futures Trading Commission (CFTC). The Chairman’s Mark, sponsored by Congressman Bob Etheridge of North Carolina, reauthorizes CFTC until fiscal year 2013, strengthens the Commission’s authority over retail foreign exchange trading, increases civil penalties, and implements the Commission’s recommendations on improving oversight of Exempt Commercial Markets (ECMs).
“The Committee’s action today to approve CFTC reauthorization signals strong, bipartisan support for the principles-based regulation model created in the 2000 law that has balanced investor protection with the rapid growth in innovative, exchange-traded products,” said Chairman Peterson. “This bill is an important priority for Congress, as it strengthens the CFTC’s critical role in protecting investors from fraud and abuse in futures trading.”
"The CFTC reauthorization bill is a solid bill that strengthens CFTC's authority to identify and prevent market manipulation and fraud,” said Ranking Member Bob Goodlatte. “The Committee has done a good job of building on the language that was passed by the House in the last Congress and incorporated provisions to address the concerns that were voiced to the Committee earlier this year regarding manipulation and fraud.”
“Whether the issue is energy trading, foreign currency trading, or trading in other commodities, the bottom line is keeping derivatives markets functioning properly to benefit our economy and the American public,” said General Farm Commodities and Risk Management Subcommittee Chairman Bob Etheridge of North Carolina. “I believe the legislation passed by the committee does just that.”
"In creating legislation, it is important the Committee strike a balance that fosters industry growth, but yet gives CFTC the tools necessary to investigate and discipline those who choose to manipulate markets," said General Farm Commodities and Risk Management Subcommittee Ranking Member Jerry Moran of Kansas. "This bill strikes such a balance. It incorporates the recommendations of the Presidents Working Group on Financial Markets, as well as incorporates suggestions of the CFTC and industry participants."
The CFTC Reauthorization Act of 2007:
The Act also gives CFTC new oversight of some trading activity on electronic trading facilities known as Exempt Commercial Markets. Specifically, the bill:
The Committee adopted one amendment, by Congressman David Scott of Georgia, to clarify that the CFTC, in interpreting the requirements of the core principles on ECMs, should give appropriate consideration to distinctions between trades that are settled bilaterally and those that are submitted to a clearinghouse. The amendment was adopted by voice vote.
The Committee also passed three bills, all by voice vote. The committee approved: