[Congressional Record Volume 141, Number 64 (Thursday, April 6, 1995)]
[House]
[Pages H4379-H4380]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    CFTC REAUTHORIZATION ACT OF 1995

  Mr. ROBERTS. Mr. Speaker, I ask unanimous consent to take from the 
Speaker's table the Senate bill (S. 178) to amend the Commodity 
Exchange Act to extend the authorization for the Commodity Futures 
Trading Commission, and for other purposes, and ask for its immediate 
consideration.
  The Clerk read the title of the Senate bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Kansas?
  Mr. de la GARZA. Mr. Speaker, reserving the right to object, I do so 
to yield to our distinguished committee chairman for an explanation of 
the legislation, and I yield to the gentleman.
  Mr. ROBERTS. Mr. Speaker, I thank the distinguished minority leader 
of the Committee on Agriculture for yielding.
  Mr. Speaker, S. 178, the CFTC Reauthorization Act of 1995, was 
adopted in the other body on February 10. The bill is a simple one-line 
reauthorization that provides authority for appropriations through the 
year 2000.

                              {time}  1600

  The Committee on Agriculture on Tuesday reported companion 
legislation by a voice vote and the presence of a quorum. Since the 
bills are identical and have no opposition, they are identical and have 
no opposition in either body, we are considering S. 178 so that we may 
expedite the reauthorization of the Commission.
  Mr. Speaker, S. 178, the CFTC Reauthorization Act of 1995 was adopted 
in the other body February 10, 1995. The bill is a simple one-line 
reauthorization providing authority for appropriations for the 
Commodity Futures Trading Commission through the year 2000 at such sums 
as may be necessary. The Committee on Agriculture on Tuesday reported 
companion legislation by voice vote in the presence of a quorum. Since 
the bills are substanially identical and had no opposition in either 
body, we are considering today S. 178 so that we may expedite the 
reauthorization of the Commission.
  Mr. Speaker, this is the first time in the 20-year history of the 
Commodity Futures Trading Commission there has not been, in conjunction 
with a CFTC reauthorization, either significant amendments to the 
Commodity Exchange Act or outright questions about whether or not the 
CFTC should continue to exist.
  The CFTC is a mature regulatory organization that is overseeing the 
most innovative and efficient markets in the world--our futures 
markets, where risk management concepts were born and the price 
discovery process provides U.S. commerce and industry the information 
necessary to compete in a global economy. The CFTC has reached 
regulatory parity with every other Federal regulator, and I would point 
out to my colleagues has done so with minimal resources and a staff of 
approximately 550 full-time employees.
  Mr. Speaker, I urge the House to adopt S. 178 today and move it on to 
the White House, where, I am certain, the President will sign the bill.
  Mr. de la GARZA. I thank the gentleman for his comments.
  Mr. Speaker, I support the legislation.
  Mr. Speaker, I commend the distinguished chairman of the Agriculture 
Committee, Mr. Roberts, as well as the chairman, Mr. Ewing, and ranking 
minority member, Mr. Rose, of the Risk Management and Specialty Crops 
Subcommittee for their leadership in providing for the expeditious 
consideration of S. 178, the Commodity Futures Trading Commission 
Reauthorization Act of 1995. This Senate bill is identical to H.R. 618 
which was reported unanimously from the Committee on Agriculture 
without amendment. The bill authorizes 
[[Page H4380]] appropriations to carry out the Commodity Exchange Act 
for each fiscal year through 2000 and I strongly support its passage.
  In the legislative activity leading up to the enactment of the 
Futures Trading Practices Act of 1992 (FTPA; Public Law 102-546), 
Congress considered and ultimately enacted a number of new 
responsibilities and authorities for the Commodity Futures Trading 
Commission [CFTC]. Those changes were designed to enhance the 
effectiveness of our futures regulatory system, while accommodating the 
evolutionary processes which are transforming world financial markets. 
Our philosophy has been and should continue to be that fair markets are 
efficient markets, and that a sound, rational and independent 
regulatory system contributes to their efficiency.
  The CFTC has made extraordinary progress in carrying out the mandates 
of the 1992 Act. The Commission's pace demonstrates clearly that it 
shares the same sense of importance that we had in Congress when those 
important changes to the Commodity Exchange Act were adopted.
  As a few examples, since the FTPA was enacted the CFTC has: Approved 
final rules exempting swap transactions, hybrid securities, and energy 
contracts meeting specified criteria from the exchange-trading and 
other requirements of the CEA; Approved final rules prohibiting dual 
trading on high-volume contract markets that do not have adequate 
systems for monitoring trading activity; Proposed rules to allow 
existing futures exchanges to sponsor trading among entities meeting 
qualifying criteria with relief from some of the regulatory strictures 
that otherwise would apply; and Approved final rules regarding 
procedures for exchange emergency actions.
  In addition, the Commission has submitted five mandated reports to 
Congress. Notable among these was The Study of Swaps and Off-Exchange 
Derivatives--one of the more complete and informative discussions of 
that issue available.
  Meanwhile, our Nation's futures markets have continued to grow and 
innovate. During fiscal year 1994 alone, the Commission approved 
trading in 28 new futures and options contracts. Futures and options 
volume on the exchanges increased by 27 percent to 510 million trades 
in fiscal year 1994 from the fiscal year 1993 level of 402 million.
  While the increased use of U.S. futures exchanges demonstrates the 
confidence that financial risk managers have in these markets, trading 
on offshore futures markets--which in many cases trade contracts 
similar to those on U.S. exchanges--has grown even more rapidly. In its 
report to Congress, A study of the Global Competitiveness of U.S. 
Futures Markets, April 1994, the CFTC noted U.S. exchanges' declining 
share of global futures trading. That trend is largely explained as the 
initial growth stage in the relatively new, foreign futures markets 
rather than a reflection of significant cost advantages. It should, 
however, make us aware in our regulatory policy decisions that we need 
to balance our efforts to ensure that the markets are sound and fair, 
with a recognition of the potential for excessive regulatory burdens to 
disadvantage U.S. futures markets vis-a-vis their foreign competitors.
  In their efforts to modernize and to comply with trade monitoring 
requirements in the Commodity Exchange Act, U.S. exchanges continue to 
work towards the development and implementation of automated audit 
trail systems. These systems promise to greatly enhance the ability of 
exchange and Commission enforcement officials to prevent fraud and 
punish cheaters.
  Finally, Commission Chairman Schapiro, other Commissioners, and 
Commission staff continue to be actively engaged in interagency policy 
coordination regarding securities and securities derivatives markets, 
over-the-counter derivatives, and other matters of importance in market 
regulation. In this effort, the Commission has rightfully asserted 
itself as the expert regulatory agency where derivative markets are 
concerned.
  Given the agency's substantial progress in carrying out the will of 
Congress expressed through the FTPA, I strongly support passage of this 
bill to extend the Commission's reauthorization through fiscal year 
2000.
  Mr. Speaker, I withdraw my reservation of objection.
  The SPEAKER pro tempore (Mr. McInnis). Is there objection to the 
request of the gentleman from Kansas?
  There was no objection.
  The Clerk read 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.''.

  The Senate bill was ordered to be read a third time, was read the 
third time, and passed, and a motion to reconsider was laid on the 
table.

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