[Congressional Record Volume 154, Number 57 (Thursday, April 10, 2008)]
[Extensions of Remarks]
[Page E580]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E580]]
                                RPF CFTC

                                 ______
                                 

                      HON. RODNEY P. FRELINGHUYSEN

                             of new jersey

                    in the house of representatives

                        Thursday, April 10, 2008

  Mr. FRELINGHUYSEN. Madam Speaker, today I am introducing legislation 
that provides an important extension of the Commodity Exchange Act of 
1934. This legislation focuses on energy transactions that perform a 
``significant price discovery function.'' The legislation also 
addresses fraud and retail transactions in foreign exchange markets. It 
gives the Commodities Futures Trading Commission broader authority to 
prosecute fraud in other commodities such as heating oil.
  Americans have lost confidence in our energy markets--particularly in 
the futures market. I have spoken with many constituents who are 
skeptical about the price of gasoline and heating oil prices. Many 
consumers strongly suspect these prices are being manipulated.
  Over the past year, we have seen historical increases in the prices 
of gasoline and heating oil. Our colleagues in the Senate have done 
significant analysis on this issue, and their findings have been 
supported by reports published by the GAO and in the fall of last year.
  At the end of last year, Triple-A, AAA predicted that these spring 
months would see a decrease in oil and gas prices between the busy 
winter and summer travel seasons. Yet, prices remain around all-time 
highs, despite relatively constant inventory levels.
  Residents of New Jersey and throughout the country have struggled 
with heating bills, businesses are having difficulty with their 
electricity and transportation costs and this situation does not appear 
to be improving.
  To fix this situation requires complex answers, but it is becoming 
patently clear that speculation in the unregulated exempt commodities 
market is working to increase energy prices.
  Providing transparency to these dark markets is long overdue. Today, 
I ask that all of my colleagues will support this legislation, which is 
very closely aligned with a Senate Amendment to the Farm bill, which 
had bipartisan support and was passed by a voice vote.
  Quoting the Energy Market Oversight Coalition, ``To restore public 
confidence, all energy markets must be fair, orderly, and transparent 
so the prices paid by consumers reflect the true supply and demand.''
  In order for our futures markets to work, and our financial system as 
a whole, there is a pressing need for transparency. The CFTC exists for 
a specific reason and the work they do is vital to the operations of 
our economy. However, it cannot accomplish its mission if there are 
markets that it cannot monitor.
  This legislation addresses this troubling gap in the law and will 
ensure the solvency of our financial system and energy markets.

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