[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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