Chairman Frank Lucas of Oklahoma and Ranking Member Collin Peterson of Minnesota issued the following statements after the House Agriculture Committee approved H.R. 1947, the Federal Agriculture Reform and Risk Management (FARRM) Act of 2013, by a large, bipartisan vote of 36-10.
Subcommittee Reviews Commodity Futures Trading Commission Reauthorization
WASHINGTON - Today, the House Agriculture Subcommittee on General Farm Commodities and Risk Management held a hearing to review reauthorization of the Commodity Futures Trading Commission (CFTC). Congressman Bob Etheridge of North Carolina is Chairman of the Subcommittee.
“Today, the Subcommittee took another important step on the road to reauthorization of the Commodity Futures Trading Commission,” said Chairman Etheridge. “Today, the Government Accountability Office provided us with a clearer picture of what is happening in energy markets. We also reviewed the CFTC’s own recommendations and examination of energy markets. I look forward to further exploring these recommendations as we move towards reauthorization.”
“The Commodity Futures Trading Commission has continued to operate far too long without proper reauthorization and sufficient funding,” said Subcommittee Ranking Member Jerry Moran of Kansas. “In recent years, markets have evolved and trading volume increased exponentially. It is essential the Agriculture Committee move toward reauthorization as soon as possible so that the CFTC has the tools necessary to properly oversee markets.”
The Commodity Exchange Act (CEA) is the foundation for federal regulation of commodity futures trading and for reauthorization of the Commodity Futures Trading Commission, which regulates futures markets. CEA was last reauthorized in 2000 with passage of the Commodity Futures Modernization Act.
The Subcommittee heard testimony from Acting CFTC Chairman Walter Lukken and Government Accountability Office Financial Markets and Community Investment Director Orice Williams. Both witnesses also appeared at a June 12 hearing about energy derivatives trading and CFTC oversight. The Subcommittee has held multiple hearings on the Commodity Exchange Act as part of the reauthorization process.
A full transcript of the hearing will be posted on the Committee website at a later date.