Legislation to Tweak Dodd-Frank Act Approved by Ag Committee
The House Agriculture Committee has approved seven legislative proposals amending Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act. H.R. 992 - the Swaps Regulatory Improvement Act was approved by a vote of 31 to 14. The other bills advanced on a voice vote. Lucas said the committee's effort is to ensure America's job creators - farmers, ranchers, small businesses, government utilities and manufacturers - aren't overburdened by financial regulations. Without these important changes - Lucas said regulations could deter businesses from hedging against risk - which is contrary to the purpose of financial regulatory reform.
Bills approved by the committee include H.R. 634 - the Business Risk Mitigation and Price Stabilization Act - which ensures end-users can continue to use derivatives to manage business risks without being subject to costly margin requirements; H.R. 677 - the Inter-Affiliate Swap Clarification Act - ensures transactions between affiliates within a single corporate group are not regulated as swaps; and H.R. 742 - the Swap Data Repository and Clearinghouse Indemnification Correction Act of 2013 - which would allow data sharing between U.S. and international regulators and swap data repositories without adding an unnecessary layer of legal bureaucracy.
The committee also approved H.R. 992 - the Swaps Regulatory Improvement Act - which amends Section 716 of the Dodd-Frank Act to limit the swap desk push-out requirement so it only applies to certain swaps; H.R. 1003 - which would require the CFTC to assess the costs and benefits of its actions; and H.R. 1038 - the Public Power Risk Management Act - which would allow producers, utility companies and other non-financial entities to continue entering into energy swaps with government-owned utilities without danger of being required to register with the CFTC as a swap dealer. Finally - the Committee approved H.R. 1256 - the Swap Jurisdiction Certainty Act - which would direct the CFTC and the Securities and Exchange Commission to adopt a joint rule on how they will regulate cross-border swaps transactions as part of the new requirements created in the Dodd-Frank Act.