House and Senate Agriculture leaders caution CFTC about futures market rules
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WASHINGTON, Sept. 25, 2013- As the House and Senate Agriculture Committees review Commodity Futures Trading Committee (CFTC) reauthorization, their members express similar concerns as major agricultural groups do regarding the agency's proposed customer protection rules."
The four principals of the agriculture committees sent a letter today to the CFTC expressing concerns about the Commission's November 14, 2012 proposal to improve protections for futures customers.
“As you work to finalize the rule on customer protections, we ask that you carefully weigh the benefits of these regulations against both the costs to America's farmers and ranchers and the potential impact on consolidation in the [Futures Commission Merchants] industry,” the senators write.
“In making this determination, we ask that you carefully consider the consequences to changing the manner or frequency in which “residual interest” - or capital - an FCM must hold to cover customer positions - is calculated,” the letter states.
The House Agriculture Subcommittee on General Farm Commodities and Risk Management scheduled a hearing to examine customer protections for Oct. 2.
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