[Congressional Record Volume 160, Number 103 (Thursday, July 3, 2014)]
[Extensions of Remarks]
[Pages E1102-E1103]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              CUSTOMER PROTECTION AND END USER RELIEF ACT

                                 ______
                                 

                               speech of

                          HON. FRANK D. LUCAS

                              of oklahoma

                    in the house of representatives

                         Monday, June 23, 2014

       The House in Committee of the Whole House on the state of 
     the Union had under consideration the bill (H.R. 4413) to 
     reauthorize the Commodity Futures Trading Commission, to 
     better protect futures customers,

[[Page E1103]]

     to provide end users with market certainty, to make basic 
     reforms to ensure transparency and accountability at the 
     Commission, to help farmers, ranchers, and end users manage 
     risks to help keep consumer costs low, and for other 
     purposes:

  Mr. LUCAS. Mr. Chair, I submit the following exchange of letters:

                                                        sifma,

                                                    June 19, 2014.
     Hon. John Boehner,
     Speaker, House of Representatives,
     Washington, DC.
     Hon. Nancy Pelosi,
     Democratic Leader, House of Representatives,
     Washington, DC.
       Dear Speaker Boehner and Leader Pelosi: SIFMA and its 
     member firms strongly support H.R. 4413, the Consumer 
     Protection and End User Relief Act, bipartisan legislation 
     that seeks to reauthorize the Commodity Futures Trading 
     Commission (CFTC) to better protect futures customers, 
     provide market certainty for end-users, and make basic 
     reforms to improve the functioning of the CFTC.
       One provision in this bill seeks to create harmonization of 
     cross-border swaps regulation by requiring the CFTC and SEC 
     to jointly promulgate rules in full compliance with the 
     Administrative Procedures Act and within 270 days. This is 
     necessary as the two agencies share jurisdiction over the 
     swaps markets and currently have inconsistent approaches to 
     the extraterritorial application of rules under Title VII of 
     the Dodd-Frank Act. This provision is largely similar to H.R. 
     1256, Swap Jurisdiction Certainty Act, which passed the House 
     by vote of 301-124.
       Another provision in the bill would prevent costly margin 
     requirements from being imposed on non-financial end-users 
     for their derivatives activity used to hedge commercial 
     risks. This provision is largely similar to H.R. 634, 
     Business Risk Mitigation and Price Stabilization Act of 2013, 
     which passed the House by vote of 411-12.
       SIFMA strongly urges you to vote for H.R. 4413. Thank you 
     for your consideration of our views.
           Sincerely,
                                                     Andy Blocker,
     EVP, Public Policy and Advocacy, SIFMA.
                                  ____



                                    Edison Electric Institute,

                                    Washington, DC, June 18, 2014.
     Hon. Frank Lucas,
     Chairman, House Agriculture Committee,
     Washington, DC.
     Hon. Collin Peterson,
     Ranking Member, House Agriculture Committee, Washington, DC.
       Dear Chairman Lucas and Ranking Member Peterson: On behalf 
     of EEI's member companies, I am writing to express our strong 
     support for H.R. 4413, the Customer Protection and End-User 
     Relief Act. The legislation provides additional certainty and 
     clarifies congressional intent on a number of issues of 
     significant importance to EEI members.
       EEI is the association of all the U.S. investor-owned 
     utilities, international affiliates and industry associates 
     worldwide. Our members provide electricity for 220 million 
     Americans, directly employ more than a half-million workers, 
     and operate in all 50 states. With more than $85 billion in 
     annual capital expenditures, the electric utility industry is 
     responsible for providing reliable, affordable, and 
     sustainable electricity that powers the economy and enhances 
     the lives of all Americans.
       EEI members are non-financial entities that primarily 
     participate in the physical commodity market and rely on 
     swaps and futures contracts mainly to hedge and mitigate 
     their commercial risk. The goal of our member companies is to 
     provide their customers with reliable electric service at 
     affordable and stable rates, which has a direct and 
     significant impact on literally every area of the U.S. 
     economy. Since wholesale electricity and natural gas 
     historically have been two of the most volatile commodity 
     groups, our member companies place a strong emphasis on 
     managing the price volatility inherent in these wholesale 
     commodity markets to the benefit of their customers. The 
     derivatives market has proven to be an extremely effective 
     tool in insulating our customers from this risk and price 
     volatility. In sum, our members are the quintessential 
     commercial end-users of swaps.
       As such, regulations that make effective risk management 
     options more costly for end-users of swaps will likely result 
     in higher and more volatile energy prices for retail, 
     commercial, and industrial customers. H.R. 4413 goes a long 
     way in providing much needed regulatory relief and an even 
     greater clarity to the compliance landscape facing EEI and 
     the entire end-user community going forward.
       Thank you for your leadership on these important issues.
           Sincerely,
     Thomas R. Kuhn.
                                  ____

                                                    June 17, 2014.
       Dear Member of the House of Representatives: The 
     undersigned organizations represent a very broad cross-
     section of U.S. production agriculture and agribusiness. We 
     urge you to cast an affirmative vote on H.R. 4413, the 
     ``Customer Protection and End-User Relief Act,'' when it 
     moves to the floor for consideration.
       This legislation, unanimously approved on a bipartisan 
     basis by the Committee on Agriculture, provides important 
     protections for futures customers:
       Enhanced reporting, transparency and accountability in 
     futures markets. These much-needed improvements will help 
     prevent another MF Global.
       The ability for customers to ``claw back'' assets from a 
     parent firm in the event of a shortfall of customer funds in 
     FCM insolvencies--something that wasn't possible with MF 
     Global.
       A clear roadmap for meaningful cost-benefit analysis to be 
     performed by the Commodity Futures Trading Commission before 
     proposing major rules.
       A solution to the very troubling ``residual interest'' rule 
     approved last fall by CFTC that would force customers to pre-
     margin hedge accounts, thereby putting perhaps twice as much 
     customer money at risk, dramatically increasing hedging 
     costs, and likely driving farmers, ranchers and small hedgers 
     out of the futures market.
       Relief from technologically infeasible recordkeeping 
     requirements in the cash commodity markets.
       Thank you in advance for your support of this bill that is 
     so important to U.S. farmers, ranchers, hedgers and futures 
     customers.
           Sincerely,
       Agribusiness Association of Iowa, Agribusiness Council of 
     Indiana, Amcot, American Cotton Shippers Association, 
     American Feed Industry Association, American Soybean 
     Association, Commodity Markets Council, Grain and Feed 
     Association of Illinois, Indiana Grain and Feed Association, 
     Iowa Institute for Cooperatives, Kansas Cooperative Council, 
     Kansas Grain and Feed Association, Michigan Agri-Business 
     Association, Michigan Bean Shippers, Minnesota Grain and Feed 
     Association, Montana Grain Elevators Association, National 
     Association of Wheat Growers, National Cattlemen's Beef 
     Association.
       National Corn Growers Association, National Cotton Council, 
     National Council of Farmer Cooperatives, National Grain and 
     Feed Association, National Milk Producers Federation, 
     National Pork Producers Council, North American Export Grain 
     Association, North Dakota Grain Dealers Association, Ohio 
     Agribusiness Association, Oklahoma Agricultural Cooperative 
     Council, Oklahoma Grain and Feed Association, South Dakota 
     Association of Cooperatives, South Dakota Grain & Feed 
     Association, Texas Agricultural Cooperative Council, United 
     Egg Producers, USA Rice Federation.

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