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.