June 8, 2015
WASHINGTON, DC - Today, Congressman Austin Scott (GA-08), Chairman of the Agriculture Subcommittee on Commodity Exchanges, Energy, and Credit, offered the following statement on the House passage of H.R. 2289, the Commodity End-User Relief Act, which authorizes the Commodity Futures Trading Commission (CFTC).
“I applaud the House for supporting this legislation which authorizes the Commodity Futures Trading Commission (CFTC) and represents the kind of thoughtful and bipartisan approach to policy-making that is often lacking in Washington,” said Subcommittee Chairman Austin Scott.“Ultimately, this bill is about protecting the American producer and the American consumer.
“Americans across the country, and many in my home state of Georgia, depend on well-functioning derivatives markets to manage their businesses and mitigate risk. From small family farms to large manufacturers, a wide range of end-users have been subject to unintended consequences and unnecessary regulations, which ultimately hurt consumers. My objective throughout the reauthorization process was to promote policies that ensure that our regulatory framework protects the integrity of our markets while not limiting the ability of end users to access these tools to conduct their business.”
Authorization for the CFTC lapsed at the end of September 2013. During the 113th Congress, the House of Representatives passed H.R. 4413, the Customer Protection and End-User Relief Act, which would have reauthorized and made improvements to the operations of the CFTC. The Senate did not take up the bill.
The House Agriculture Committee, through Congressman Austin Scott’s Subcommittee on Commodity Exchanges, Energy, and Credit, began a series of four hearings relating to the oversight and reauthorization of the CFTC in February, hearing from a full range of stakeholders, starting with CFTC Chairman Massad, then onto end-users and financial intermediaries, and finally from the commissioners.
End-users, which are farmers, ranchers, manufacturers, and utilities, use derivatives markets to protect themselves from uncertainties in the economy. They face uncontrollable risks like changing interest rates, commodity prices, and foreign exchange rates. Futures, options, and swaps – derivatives contracts- allow uncontrollable risks to be managed so end-users can focus on agricultural production, manufacturing, or supplying energy. This bill includes needed reforms to clarify Congressional intent, minimize regulatory burdens, and preserve the ability of necessary risk management markets to serve those who need them.
Click hereto read the text of H.R. 2289, the Commodity End-User Relief Act.
Click hereto read the bill summary of H.R. 2289, the Commodity End-User Relief Act.