[Congressional Record Volume 141, Number 27 (Friday, February 10, 1995)]
[Senate]
[Pages S2438-S2439]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        CFTC REAUTHORIZATION ACT

  Mr. CRAIG. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar item No. 20, S. 178, 
a bill to amend the Commodity Exchange Act to extend the authorization 
for the Commodity Futures Trading Commission; that the bill be deemed 
read a third time, passed, and a motion to reconsider be laid upon the 
table, and that any statements relating to the bill be placed at the 
appropriate place in the Record.
  Mr. President, let me say this has been cleared by the minority.
  The PRESIDING OFFICER (Mr. Inhofe). Is there objection? Without 
objection, it is so ordered.
  Mr. LUGAR. Mr. President, today, we consider S. 178, the CFTC 
Reauthorization Act of 1995. This legislation was sponsored by myself 
and Senator Leahy, and requested by the Commodity Futures Trading 
Commission. The only provision of this legislation is to authorize 
appropriations for the CFTC through fiscal year 2000. While enactment 
of S. 178 merely continues the CFTC's responsibilities under existing 
law, it is important that Congress act now to leave no doubt about the 
continuing role of the CFTC. Further, Congress spent considerable time 
and effort addressing futures related issues before enacting the 
Futures Trading Practices Act of 1992. The bill before us will give the 
Commission adequate time to complete implementation of the 1992 act and 
allow time for review by Congress of that implementation and the CFTC's 
overall performance.
  A hearing on this legislation was held on Thursday, January 26, to 
review the CFTC's performance to date in implementing the requirements 
of the 1992 act, as well as access its operations generally. Testimony 
was taken from the CFTC, the four largest U.S. futures exchanges, two 
futures industry trade groups, and the National Futures Association, a 
self-regulatory organization.
  Concerns had been raised by some exchanges about the implementation 
of the enhanced audit trail requirements in the 1992 act which go into 
effect in October of this year. However, in the testimony of the CFTC 
Chairman, and in her responses to questions, it was made clear that the 
CFTC has not held that an electronic hand-held device is necessary to 
meet the enhanced requirements. Further, the CFTC Chairman assured the 
committee that after the exchanges have attained a high level of 
compliance, further incremental improvements will only be required as 
practicable and the cost of the improvements will certainly be an issue 
in determining what is practicable. In short, common sense prevailed. 
All witnesses at the hearing supported the reauthorization without 
amendments. In addition to the futures industry, this legislation has 
received the support of a number of agricultural groups including the 
American Farm Bureau Federation, the National Grain Trade Council, the 
American Cotton Shippers Association, and the National Grain and Feed 
Association. No futures industry groups, or agricultural groups have 
notified the committee of their opposition to this bill.
  The committee held a business meeting on February 1 to consider the 
bill. No amendments were offered and S. 178 was ordered reported 
favorably by the committee.
  [[Page S2439]] Of course, reauthorization does not preclude other 
futures-related legislation during the next 5 years. In fact, I expect 
the committee will want to conduct vigorous oversight and consider 
futures legislation as needed.
  Mr. President, I urge my colleagues to give their approval to S. 178.
  Mr. LEAHY. Mr. President, I am pleased to join Senator Lugar today in 
supporting the passage of S. 178, which reauthorizes the Commodity 
Futures Trading Commission [CFTC]. The last authorization for 
appropriations for the CFTC expired in 1994. An authorization for 
appropriations through fiscal year 2000 is necessary to continue 
orderly funding of the Commission and support for its activities.
  The CFTC is a small agency with an important mission--protecting the 
integrity and effective functioning of our Nation's futures markets. 
The volume of commodity futures and options contracts traded on the 
Nation's commodity exchanges exceeded half a billion transactions last 
year. Since 1974, the year Congress created the CFTC, trading on U.S. 
futures exchanges has increased by more than 1,500 percent. The pricing 
and hedging functions of these markets are vital to our economic well-
being.
  The last reauthorization of the agency occurred only 2 years ago with 
passage of the 1992 Futures Trading Practices Act [FTPA]. Passage of 
that bill was one of the outstanding achievements of the Agriculture 
Committee during my tenure as chairman. The FTPA was the toughest, 
proconsumer futures reform package in a generation.
  The 1992 reforms are the right course for the CFTC and the exchanges 
to pursue. I am pleased that all witnesses and committee members agreed 
at the January 26 hearing that no changes to the FPTA are necessary at 
this time.
  The Agriculture Committee will continue its careful oversight of the 
Commission and the exchanges. Compliance with the enhanced audit trail 
standard and developments in derivatives markets will receive my close 
attention.
  I expect the exchanges and the CFTC to work diligently to complete 
the 1992 reforms on a timely basis. With the leadership of the 
Commission's new Chairman, Mary Schapiro, I am confident this will 
happen.
  So the bill (S. 178) was deemed to have been read three times and 
passed, as follows:
                                 S. 178

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``CFTC Reauthorization Act of 
     1995''.

     SEC. 2. AUTHORIZATION OF APPROPRIATIONS.

       Section 12(d) of the Commodity Exchange Act (7 U.S.C. 
     16(d)) is amended to read as follows:
       ``(d) There are authorized to be appropriated such sums as 
     are necessary to carry out this Act for each of fiscal years 
     1995 through 2000.''.

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