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Commodity Markets/Wall Street Reform

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Anonymous

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R-CALF United Stockgrowers of America


“Fighting for the U.S. Cattle Producer”

For Immediate Release Contact: R-CALF USA Communications Coordinator Shae Dodson-Chambers
June 30, 2010 ; Phone: 406-672-8969; [email protected]
Group Pushes for Reform of Futures Markets



Washington, D.C. – R-CALF USA, along with other members of the Commodity Markets Oversight Coalition (CMOC), sent a letter today to all members of Congress to urge they support the immediate passage of the recently completed conference report on HR 4173, “Restoring American Financial Stability Act of 2010.”



“CMOC members are among the most significant commodity end users in the country, and as such, we have suffered disproportionately due to the recent staggering volatility in commodity futures markets and the impacts that rampant speculation and inadequate regulation have had on those markets,” the letter states. “For years, we have been supporting efforts to provide regulators with significantly expanded authorities and mandates for overseeing energy and other commodity markets.”



“This legislation will increase transparency, close down loopholes in the regulation of commodities futures markets and reduce volatility in commodity prices, which continues to wreak havoc on commercial businesses and consumers,” said R-CALF USA CEO Bill Bullard. “We’re now at a pivotal point to bring real reform to the American economy regarding the improvement of the commodities futures markets, and the CMOC believes this landmark legislation will benefit all American consumers and our nation’s economy at large because the glaring shortcomings in our nation’s commodity derivatives regulation framework must be addressed.”



The conference report puts into effect many positive changes for the oversight of commodities law, including: 1) requiring all clearable speculative contracts to trade on exchanges and clear through centralized clearinghouses with a with an appropriately narrow exemption for legitimate end-users of commodity derivatives; 2) greatly strengthening traders’ and exchangers’ recordkeeping and reporting requirements; and, 3) closing many existing loopholes that have undermined the price discovery functions of the futures markets. Additionally, this bill would require the Commodity Futures Trading Commission (CFTC) to impose aggregate speculative position limits on traders across all markets.



R-CALF USA member policy calls for fundamental reforms of the commodities futures markets to restore its purpose of providing U.S. cattle producers with accurate price discovery and a meaningful opportunity to offset price risk.



“This legislation represents significant progress in achieving our members’ goal to reform the futures market so it can become a more useful management tool for U.S. cattle producers,” Bullard concluded.



Other organizations that signed on to the letter are: the American Cotton Shippers Assn.; the Air Transportation Assn.; the American Trucking Associations; Masters Capital Management; the National Association of Shell Marketers; National Farmers Union; National Grange, the National Latino Farmers & Ranchers Trade Assn.; NATSO; the New England Fuel Institute; the Petroleum Marketers Association of America; United Egg Producers; and, the Western Peanut Growers Assn.


News from the House Agriculture Committee

http://agriculture.house.gov

FOR IMMEDIATE RELEASE
Wednesday, June 30, 2010

Media Contact:
Liz Friedlander (202) 225-1564
[email protected]

April Slayton (202) 225-6872
[email protected]

Peterson Applauds House Passage of Wall Street Reform

WASHINGTON -House Agriculture Committee Chairman Collin Peterson today commended the House of Representatives for passing the
conference report on the Wall Street Reform and Consumer Protection Act (H.R. 4173).


"I am pleased the conference report contains many of the provisions the House Agriculture Committee endorsed in three different
bills on these topics,"
Chairman Peterson said. "This bill will mitigate the outrageous price spikes in commodity markets that we
first saw two years ago, bring greater transparency to the derivatives market through mandatory clearing and ensure that end users
can continue using derivatives to hedge risk."


"This comprehensive legislation represents a middle ground between the House and Senate products. And, while no one got everything
they wanted in this bill, I think we got a bill that will help prevent another crisis in the financial markets like the one we
experienced in 2008," Chairman Peterson said.

The House Agriculture Committee played a key role in developing the financial reform legislation; particularly provisions that
address increased volatility and speculation in the derivatives markets and that strengthen oversight and increase transparency in
the markets for futures, options and over-the-counter products and swaps.

The Senate must now vote to approve the conference report before it is sent to President Obama for his signature.
 
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