Business Risk Mitigation and Price Stabilization Act of 2013

Floor Speech

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Mr. AUSTIN SCOTT of Georgia. I thank the chairman.

Madam Speaker, I rise today in support of H.R. 634, the Business Risk Mitigation and Price Stabilization Act of 2013. And I, too, would like to thank many of the Members on the other side of the aisle, as well as mine, specifically, Mr. McIntyre from North Carolina for his work on the Ag Committee on this piece of legislation.

This bill clarifies congressional intent by providing a clear exemption for non-financial end users that qualify for the clearing exception under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Across the country, consumers and businesses alike are confronted with risks that are associated with their day-to-day operations. To manage these risks, businesses use over-the-counter derivatives to provide price certainty. Consumers, in turn, benefit from these risk-management practices through lower volatility in the day-to-day prices of the goods and services that they purchase.

By passing this legislation, Congress is providing a specific exemption from clearing and margin requirements for businesses and individuals who are not financial institutions. This accounts for less than 10 percent of the capital of the derivatives markets. It relieves the burdensome regulations and keeps the U.S. economy moving. This balance protects the consumer while providing a pro-growth environment for business.

To further the initial goal, H.R. 634 clarifies Congress' intent of keeping much-needed capital in the U.S. markets, which plays an important role in our country's continued economic growth.

I would also like to reiterate the fact that last year Congress passed this same piece of legislation 370-24. For this reason, I ask my colleagues to support H.R. 634, so that businesses and individuals may benefit from the day-to-day risk-management prices that this will provide.

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