FOR IMMEDIATE RELEASE
September 28, 2007
Members Reaffirm CFTC’s Exclusive Jurisdiction of Futures Contracts
Asserts CFTC is obligated to maintain the law as written by Congress
WASHINGTON – In a letter sent to Commodity Futures Trading Commission (CFTC) Acting Chairman Walt Lukken, Agriculture Committee members Ranking Republican Bob Goodlatte, Chairman Collin Peterson, Rep. Jerry Moran and Rep. Bob Etheridge reaffirm CFTC’s exclusive jurisdiction over futures trading contracts. The Members praised CFTC’s efforts to assert its exclusive jurisdiction and upholding the statute as intended by the Congress.
The letter follows a General Farm Commodities and Risk Management Subcommittee, chaired by Rep. Etheridge and Ranking Republican Jerry Moran, hearing held earlier this week to review the Commodity Exchange Act (CEA). The CEA clearly outlines the CFTC’s exclusive jurisdiction over futures trading contracts: §2(a)(1)(A) “…exclusive jurisdiction, …with respect to… transactions involving contracts of sale of a commodity for future delivery, traded, or executed on a contract market designated or derivatives transaction execution facility.”
The letter asserts that exclusive jurisdiction under one regulatory authority was created to ensure consistent and practical oversight of futures trading contracts. “Congress made this unusual grant of exclusive jurisdiction to end the confusion caused by two separate federal regulators. …If the CFTC were to cede jurisdiction, it will not only abrogate the law, it will ignore the singular vision Congress intended for the CFTC, and invite those who look to nefariously arbitrage multiple regulatory regimes back to the futures market,” wrote Goodlatte, Peterson, Moran and Etheridge.
“It is the CFTC’s primary responsibility to protect the integrity of futures market. We congratulate the entire commission for taking their obligation so seriously,” the Agriculture Committee Members wrote.
CLICK HERE to view the letter sent by Reps. Goodlatte, Peterson, Moran and Etheridge to the CFTC.
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