The House Ag Committee approved the Commodity End-User Relief Act – which will reauthorize and improve the operations of the Commodity Futures Trading Commission – by voice vote on Thursday. House Ag Chair Mike Conaway says this bill codifies new practices instituted by the CFTC and other market regulators to protect customer margin – includes a strong cost-benefit analysis measure to produce better rules and provides relief for end-users from burdensome requirements currently in place. Conaway says the derivatives market exists to help businesses manage their risk – and this bill will bring positive reforms to help the markets run efficiently and effectively for market participants, financial intermediaries and end-users.
House Ag Ranking Member Collin Peterson does not support the bill because he says the facts on the ground have changed. Peterson is concerned Title II’s requirements would make it more difficult for the Commission to function and only slow down the process of providing regulatory relief to market participants. He says the Commission – and the markets they regulate – need support – but in some areas – he believes the bill moves in the wrong direction.