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 Trading in Energy Derivatives
WASHINGTON, D.C. - Today, the House Agriculture Subcommittee on General Farm Commodities and Risk Management held a hearing to review the trading of energy-based derivatives. Congressman Bob Etheridge of North Carolina is Chairman of the Subcommittee.
“The trading of energy-based derivatives impacts not only farmers, but every man, woman, and child in America,” said Chairman Etheridge. “Derivative trading provides customers with forums for price discovery and price hedging for a wide variety of commodities and financial instruments. In 2000, Congress took a bold step by dramatically amending the Commodity Exchange Act and changing our system of derivatives market regulation. Now, seven years later, it is an appropriate time for us to review the energy-derivatives markets as well as the CFTC’s oversight of these markets.”
“Since passage of the Commodity Futures Modernization Act, commodity markets have exponentially increased in size and scope,” said Subcommittee Ranking Member Jerry Moran of Kansas. “It is Congress’ responsibility to make sure the Commodity Futures Trading Commission has the necessary authority to protect the public and market users from manipulation and fraud so that the market remains open and competitive.”
The Subcommittee heard testimony from two panels of witnesses, including that of the acting Chairman of the Commodity Futures Trading Commission (CFTC), Walter Lukken. CFTC is the chief regulator of commodity futures and options markets.
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.
The Honorable Walter Lukken, Acting Chairman and Commissioner, Commodity Futures Trading Commission, Washington, D.C.
Ms. Orice M. Williams, Director, Financial Markets and Community Investment, U.S. Government Accountability Office, Washington, D.C.
Dr. James E. Newsome, President and CEO, New York Mercantile Exchange, Inc., New York, New York
Mr. Jeffrey C. Sprecher, Chairman and CEO, Intercontinental Exchange, Inc., Atlanta, Georgia
Mr. Robert G. Pickel, Executive Director and CEO, International Swaps and Derivatives Association, New York, New York
Mr. Arthur Corbin, President and CEO, Municipal Gas Authority of Georgia, on behalf of American Public Gas Association, Kennesaw, Georgia
Mr. Paul Cicio, President Industrial Energy Consumers of America, Washington, D.C.
Mr. Craig D. Eerkes, President Sun Pacific Energy, on behalf of Petroleum Marketers Association of America, Kennewick, Washington