FEDERALhearing transcript

Senate Hearing on CFTC Reauthorization and Derivatives Markets

Original title: THE STATE OF THE DERIVATIVES MARKET AND PERSPECTIVES FOR CFTC REAUTHORIZATION

January 1, 2020

derivatives market CFTC financial regulation agriculture Dodd-Frank Act reauthorization

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The Frame

What this does

The CFTC regulates the markets used by farmers and businesses to manage financial risk; formal would set the agency's legal mandate and operational priorities for the coming years.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Agricultural producers

These producers use derivatives to hedge commercial risks, which are regulated by the CFTC.

Financial clearinghouses

These entities are subject to international regulatory standards and CFTC oversight.

What changed

Last recorded activity January 1, 2020.

What's next

Next step not available in the current record.

Summary

The Senate Committee on Agriculture, Nutrition, and Forestry held a hearing to discuss the state of the market and the need to reauthorize the Commodity Futures Trading Commission (CFTC). The CFTC has been operating without formal since 2013, and the committee is reviewing how recent technological changes and international regulations impact the agency's oversight.

Key Facts

The CFTC has not been formally reauthorized by Congress since October 2013.
The committee is evaluating the impact of the Dodd-Frank Act on derivative market transparency.
The hearing addressed concerns regarding European Union legislative efforts that may affect the mutual recognition of foreign-based clearinghouses.
The committee is examining the role of new technologies, such as blockchain, in the derivatives market.
The hearing included testimony from representatives of the National Futures Association, Futures Industry Association, CHS Hedging, and Better Markets.
The committee accepted written testimony from various trade associations and coalition groups for the official record.

Why It Matters

The CFTC regulates the markets used by farmers and businesses to manage financial risk; formal would set the agency's legal mandate and operational priorities for the coming years.

Frequently Asked Questions

What is the CFTC?

The Commodity Futures Trading Commission is the federal agency that regulates the U.S. markets, which are used by businesses to hedge against commercial risks.

Why is this hearing happening?

The committee is reviewing the CFTC's operations to prepare for its formal , as the agency has not been reauthorized since 2013.

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift100% confidence

Long-term lapse in authorization

The CFTC has been operating without formal congressional reauthorization for nearly six years, relying on ongoing funding instead.

Commodity Futures Trading Commission

Connected Entities

personPat Roberts“Chairman of the Senate Committee on Agriculture, Nutrition, and Forestry”Map →

personThomas W. Sexton“CEO of the National Futures Association”Map →

personDebbie Stabenow“Ranking Member of the Senate Committee on Agriculture, Nutrition, and Forestry”Map →

personJoe Barker“Director of Brokerage Services at CHS Hedging”Map →

organizationCommodity Futures Trading Commission“Federal agency responsible for regulating derivatives markets”Map →

personWalter L. Lukken“CEO of the Futures Industry Association”Map →

personDennis M. Kelleher“CEO of Better Markets”Map →

Sources

Open source document

www.govinfo.gov

Analysis Score

0–100

Significance65
How much this matters to a regular citizen
Controversy20
Intensity of disagreement among stakeholders
Entertainment5
Compellingness for a non-policy-wonk reader
Buzz15
Current news / social attention level

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