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Congress Approves Protection for Futures Market Customers

Congress Approves Protection for Futures Market Customers

26 June 2014

US - The US House of Representatives passed H.R. 4413, the "Customer Protection and End-User Relief Act," with a vote of 265-144, reports USA Rice Federation.

The USA Rice Federation and thirty three other agriculture groups signed a letter last week urging House members to vote "yes" on the bill which reauthorizes the Commodities Futures Trading Commission through 2018.

Some highlights of the bill include changes to the approved residual interest rule, customer ability for self-protection in the event of futures commission merchants (FC) insolvencies, and relief from technologically infeasible recordkeeping requirements.

"Customer protection and access are key to helping producers and other users effectively use the futures market to mitigate the risk inherent in agriculture and other industries," said Reece Langley, USA Rice's vice president of government affairs. "This legislation will help remedy some unduly tight restrictions on the futures market, while putting in place measures to protect users."

The White House, though it opposes the underlying bill, has not threatened a veto. The Senate Agriculture Committee, which oversees the CFTC, has not yet introduced companion legislation but would likely include some substantive changes with its version.

 

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