Agricultural News
House Ag Committee Passes Reauthoirzation of CFTC- Cattle Industry Cheers
Wed, 30 Oct 2019 14:49:49
The House Agriculture Committee passed H.R. 4895, legislation to reauthorize the Commodity Futures Trading Commission through 2025 by voice vote this morning.
"The bill - helps strengthen our financial market infrastructure and makes it more resilient. It also combats fraud and promotes cooperation among regulators," said Agriculture Committee Chairman Collin Peterson of Minnesota. "But it's even more important to me that we've done it in a bipartisan way that sends a strong message to the Senate. The people that look to our markets for integrity don't care about political wins and losses. They expect us to conduct the business of this Committee."
The bipartisan legislation improves system safeguards requirements for clearinghouses, trading platforms and swap data repositories; clarifies provisions for relief in the event of a broker bankruptcy; to strengthen the resiliency of financial market infrastructure; adds whistleblower protections for employees of organizations under CFTC jurisdiction; codifies no action letters that have been in the place making permanent relief for churches, university endowments, and other charitable organizations that use the markets to provide healthcare and retirement plans for their employees; enables further cooperation between the CFTC and international regulatory bodies; establishes an internship program to promote diversity in hiring; and authorizes the CFTC to make an honors program that will help them grow their own talent.
Bill materials, including text of the bill and an accompanying manager's amendment, as well as video of the markup, are available by clicking or tapping here.
One agricultural group quickly praised the vote- the National Cattlemen's Beef Association.
National Cattlemen's Beef Association (NCBA) Manager of Legislative Affairs and Market Regulatory Policy Darryl Blakey today released the following statement in response to the U.S. House Agriculture Committee's approval of legislation reauthorizing the Commodity Futures Trading Commission (CFTC) :
"We're pleased to see that the House Committee on Agriculture took the first step towards getting the U.S. CFTC reauthorized. The committee leadership has come together to move this legislation forward in a bipartisan fashion and having this approach has allowed all parties to be honest in their negotiations to build a constructive and sound legislative product that can equip the Commission for the markets our members face today.
"As a representative of true commercial end-users, NCBA has naturally been a part of this reauthorization process from the very beginning by being one of the first organizations knocking on the doors of Congress in the form of meeting with key offices and sending up a thorough letter of support and ideas for a potential CFTC reauthorization package. This included providing tools for reducing systemic risk, ensuring market integrity for end-users, and delivering regulatory consistency, while also considering the important role derivatives markets play in the ability of farmers, ranchers, and agribusinesses to hedge their risks efficiently and effectively.
"Our members are pleased to see that some of our original ideas are in the product today in the form of continued protection for end-users from regulatory burdens, enhancement of the agency's regulatory tools, and establishing coordination between the Office of the Chief Economist and the Commission to consider a cost-benefit analysis before it's rulemakings.
"NCBA hopes to continue supporting this legislation as it moves forward in the House, and to working with Congress on getting the CFTC reauthorized because cattlemen and cattlewomen continue to rely on the derivatives markets to manage business risk."
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