The Commodity Futures Trading Commission
(CFTC) may be limited in its ability to enforce new swaps rules if a bill that
has gained early support in the US House of Representatives is passed.
The Customer Protection and End-User Relief
Act on Wednesday was approved by the US House Agriculture Committee with
bipartisan support and may face a full vote on the House floor.
The bill will technically re-authorise the
CFTC until September 2018 and give the Committee a chance to review the
Commission’s operations. In its present form, it includes sections focused on
relief for certain participants for swaps rules – including municipal utilities
It also includes provisions to revise CFTC operational
Committee chairman Representative Frank
Lucas said: “This process also allowed the committee to take stock of past
events, such as the passage of the Dodd-Frank Act of 2010, the ensuing
rulemaking process,” he said. “It is impossible to consider re-authorising the
CFTC and the future of the CFTC without recognising the impact of these events
on the agency and its response to them.”
Commenting on the bill, US derivatives
trade body the Futures Industry Association (FIA) commended the Committee for
its bipartisan approach.
the process of enacting these statutory changes is far from complete, such
thoughtful coordination among the various political interests is critical to
ensuring that the final product yields a balanced outcome,” the FIA statement