CFTC to test new proposals under House bills
Thursday 26 January 2012 - by Andrew Hickley
Under the proposals, the CFTC's office of the chief economics would have to assess both the quantitative and qualitative effect of proposals, meaning the agency could only approve new regulation where it could justify the costs.
Other measures include extending end-user exemptions, a refined definition of a swap execution facility, and clarifying the definition of a swap deal in the Commodity Exchange Act to ensure less users face regulatory requirements.
House Agriculture Committee chairman Frank Lucas said: "I appreciate the bipartisan leadership of my colleagues on the bills that advanced today. Our effort is to ensure that America's job creators - our farmers, ranchers, small businesses, community banks, energy companies and manufacturers - are not overburdened by financial regulations.
"Without these important changes, regulations could deter businesses from hedging against risk. That increases costs for consumers and reduces stability in the market place, which is contrary to the intent of the original Dodd Frank legislation."
Three of the bills have already been passed by the House Financial Services Committee, and could now be scheduled for a full vote in the Republican-controlled House and be taken up in the Democrat-led Senate.
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