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 Reviews Commodity Exchange Act Reauthorization
WASHINGTON, D.C. – Today, the House Agriculture Subcommittee on General Farm Commodities and Risk Management held a hearing to review reauthorization of the Commodity Exchange Act (CEA). Congressman Bob Etheridge of North Carolina is Chairman of the Subcommittee.
“The futures industry impacts our lives every single day, affecting almost everything from the price of corn, wheat, and soybeans that goes into our food products to the interest we pay on our mortgages,” Chairman Etheridge said. “In 2000, Congress took a bold step in dramatically changing how the Commodity Futures Trading Commission (CFTC) oversees derivatives markets. As this Subcommittee moves forward with CFTC reauthorization, it is an appropriate time for us to review what Congress accomplished in 2000, to review CFTC’s oversight of these markets, whether they are appropriate for every commodity, and whether or not their authority should be increased in some areas.”
“Record growth in the commodity futures industry has provided new ways for businesses to manage risk and has substantially benefited the U.S. economy,” said Ranking Member Jerry Moran. “With growth, however, come new challenges. It is the duty of this subcommittee to examine how markets have evolved and decide whether a regulatory change should be made. We should be wary of actions that might stifle market growth, drive markets oversees or discourage entrepreneurs from developing new and legitimate markets. I hope we can work to together to reauthorize the Commodity Exchange Act in a conscious, yet expeditious manner.”
The Commodity Exchange Act is the foundation for federal regulation of commodity futures trading and for reauthorization of the Commodity Futures Trading Commission, which is the chief regulator for futures markets. The CEA was last reauthorized in 2000 with passage of the Commodity Futures Modernization Act.
The Subcommittee heard from two panels of witness representing large and small exchanges, exempt commercial markets, and representatives of options and futures trading entities. The opening statements of all the witnesses are available on the Committee website, and a full transcript of the hearing will be posted on the Committee website at a later date.
Mr. Terrance A. Duffy, Executive Chairman, Chicago Mercantile Exchange Group Inc., Chicago, Illinois
Dr. James E. Newsome, President and CEO, New York Mercantile Exchange, Inc., New York, New York
Mr. Layne G. Carlson, Corporate Secretary and Treasurer, Minneapolis Grain Exchange, Minneapolis, Minnesota
Mr. Jeffrey C. Sprecher, Chairman and CEO, Intercontinental Exchange, Inc., Atlanta, Georgia
Dr. Michael Walsh, Executive Vice President, Chicago Climate Exchange, Chicago, IL
Mr. Daniel J. Roth, President and CEO, National Futures Association, Chicago, IL
Mr. Gregory P. J. Zerzan, Counsel and Head of Global Public Policy, International Swaps and Derivatives Association, on behalf of ISDA and the Securities Industry and Financial Markets Association (SIFMA), Washington, D.C.
Mr. John M. Damgard, President, Futures Industry Association, Washington, D.C.
Ms. Terri Becks, CFO and Secretary, Campbell & Campbell, Inc., on behalf of Managed Funds Association, Baltimore, MD
Mr. William J. Brodsky, Chairman and CEO, Chicago Board Options Exchange, on behalf of U.S. Options Exchange Coalition, Chicago, IL