DeLauro Statement on CFTC Speculation Report and Recommendation

Statement

DeLauro Statement on CFTC Speculation Report and Recommendation

Congresswoman Rosa L. DeLauro (CT-3) issued the following statement commenting on the report and recommendations of the Commodities Future Trading Commission regarding speculation in the energy market.

"This report, even after a preliminary read, seems to support a permanent legislative fix to restore balance to the energy marketplace. In fact, it appears to counter Chairman Lukken's past statements that speculation is not a problem. It recommends a significant increase in the transparency of energy markets, more careful analysis of the data and even a reclassification of swap dealers.

"Given these recommendations, it is particularly disappointing that two months ago, a number of Republicans prevented passage of legislation that would have brought back transparency to our energy futures markets.

"Fortunately, between today's report from the CFTC and the report by Michael Masters and Adam White issued earlier this week, we have further support to again bring a legislative fix to a vote. We will continue to fight to bring legislation that will restore transparency to the energy markets and bring relief to Americans struggling with skyrocketing gas prices."

DeLauro joined with Congressmen John Larson (D-CT), Bart Stupak (D-MI) and Chris Van Hollen (D-MD) to work with Agriculture Committee Chairman Collin Peterson (D-MN) to craft the Commodity Market Transparency and Accountability Act (H.R. 6604). The bill would take crucial steps to curb excessive speculation in the energy futures markets by directing the CFTC to:

Require foreign boards of trade to share trading data and adopt speculative position limits on contracts that trade U.S. commodities similar to U.S.-regulated exchanges.

Require the Commodity Futures Trading Commission (CFTC) to set trading limits for all agricultural and energy commodities, in order to prevent excessive speculation.

Limit eligibility for hedge exemptions to bona-fide hedgers.

Codify CFTC recommendations to improve transparency in dark markets by disaggregating index fund and other data in energy and agricultural markets as well as requiring detailed reporting from index traders and swap dealers.

Authorize CFTC to take action if it finds disruption in over-the-counter markets for energy and gas.

Require the CFTC to study the effectiveness of establishing position limits in over-the-counter markets.

Strengthening Enforcement to Prevent Market Manipulation - calls for a minimum of 100 full-time CFTC employees to strengthen enforcement, to prevent manipulation and to prosecute fraud. Despite record trading volume in the futures markets, increasing 8000 percent, CFTC staffing is at its lowest level since the agency was created in 1974.

Establishes an independent office for the CFTC Inspector General.

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