House Agriculture Committee approves amendment to H.R. 1317
On September 30, the House Agriculture Committee approved an amendment in the nature of a substitute to H.R. 1317, a bill to amend the Commodity Exchange Act (CEA) and the Securities Exchange Act of 1934 to specify how clearing requirements apply to certain affiliate transactions, and for other purposes.
First introduced by Reps. Steve Stivers (R-OH), Gwen Moore (D-WI), Chris Gibson (R-NY), and Marcia Fudge (D-OH) on March 4th, H.R. 1317 will narrowly expand the end-user clearing relief, so that it provides the relief Congress intended for entities that hedge on behalf of affiliated end-users. H.R. 1317 was amended by the House Financial Services Committee on July 29th and reported out by a vote of 57-0. The amendment offered by Rep. Marcia Fudge mirrors the language adopted by the House Financial Services Committee.
“These commercial end-users are agricultural producers and manufacturers who employ thousands of Americans and rely on the derivatives markets to manage their risks. This amendment is a common-sense clarification – language which the House has previously approved – to make sure end-users are able to qualify for the exemptions Congress intended. I urge my colleagues in the Senate to include this language in their legislative package that would reauthorize the CFTC and make other important changes to the CEA,” said Agriculture Committee Chairman K. Michael Conaway.