Rep. Frank Lucas, Chairman of the House Agriculture Committee, today issued a statement in response to the Commodity Futures Trading Commission's (CFTC) surprise "advisory notice" to further regulate cross-border swaps.
Subcommittee Hears from Commodity Futures Industry
WASHINGTON, D.C. – Congressman Jerry Moran, Chairman of the House Agriculture Subcommittee on General Farm Commodities and Risk Management, today chaired the second hearing in a series of two hearings to examine the reauthorization of the Commodity Futures Trading Commission (CFTC). The Subcommittee heard from three panels of witnesses representing the commodity futures trading industry.
The CFTC was established in 1974 and the authorization will expire in September 2005. The CFTC was last reauthorized four years ago resulting in the enactment of the Commodity Futures Modernization Act of 2000 (CFMA). The provisions created in CMFA included major changes in the Commodity Exchange Act (CEA) regarding the regulation of exchange-traded futures contracts, over-the-counter (OTC) derivatives, and "security futures," contracts based on individual stocks, which were previously prohibited.
The Subcommittee held its first hearing last week and heard testimony from Dr. Sharon Brown-Hruska, Acting Chairman of the CFTC. Today’s witness list included members of associations and exchanges who have a stake in the legislation developed by the Subcommittee.
“Technological changes have allowed the futures industry and options market to grow and evolve into an around-the-clock global industry. Past legislative changes have allowed new products, such as single stock futures, to be introduced, given solid legal footing to existing products, and reflected the regulatory requirements of internationally competitive markets for risk management products. In the over four years since the passage of CFMA, futures markets have grown and developed tremendously, as well as faced some difficulties and challenges and today we continue our review of the futures industry by listening to the leaders in the industry,” said Congressman Moran.
Chairman Moran said the Subcommittee will consider the reauthorization very carefully and continue to gather feedback from the industry throughout the reauthorization process.
Mr. Terrence A. Duffy, Chairman, Chicago Mercantile Exchange Holdings, Inc, Chicago, Illinois
Mr. Charles Carey, Chairman, Chicago Board of Trade, Chicago, Illinois
Dr. James Newsome, President, New York Mercantile Exchange, Inc., New York, New York
Mr. Frederick W. Schoenhut, Chairman, New York Board of Trade, New York, New York
Mr. Satish Nandapurkar, Chief Executive Officer, Eurex US, Chicago, Illinois
Mr. John M. Damgard, President, Futures Industry Association, Washington, D.C.
Mr. Daniel J. Roth, President and Chief Executive Officer, National Futures Association, Chicago, Illinois
Mr. Micah Green, President, The Bond Market Association, New York, New York
Mr. John G. Gaine, President, Managed Funds Association, Washington, D.C.
Mr. Robert G. Pickel, Executive Director and Chief Executive Officer, International Swaps and Derivatives Association, Inc., New York, New York
Mr. George Hanley, President, Hanley Group, Chicago, Illinois, on behalf of the National Grain Trade Council, Washington, D.C.
Mr. Tom Coyle, General Manager of Chicago and Illinois River Marketing LLC, Chicago, Illinois on behalf of the National Grain and Feed Association, Washington, D.C.
Mr. Jeffrey C. Sprecher, Chairman and Chief Executive Officer, IntercontinentalExchange, Inc., Atlanta, Georgia
Mr. Martin Doyle, President, OneChicago, LLC, Chicago, Illinois