Ag Comittee takes first step in strengthening CFTC

The House Agriculture Committee has approved legislation to increase the transparency and strengthen oversight of futures, options and over-the-counter (OTC) markets. By voice vote, the Committee approved the Derivatives Markets Transparency and Accountability Act of 2009, a bill sponsored by Committee Chairman Collin Peterson. The legislation toughens position limits on futures contracts for physically-deliverable commodities as a way to prevent potential price distortions caused by excessive speculative trading. The bill also imposes a clearing requirement on OTC derivatives contracts and empowers the Commodity Futures Trading Commission (CFTC) with the ability to suspend trading in naked credit default swaps under certain circumstances. Peterson pointed out - this bill broadens and improves on last year's bipartisan derivatives legislation. He called on Congress to - act quickly and pass a bill that will bring much-needed transparency to derivatives markets.Rep. Randy Neugebauer (R-TX) tells All Ag, All Day that there is talk of a systemic regulator -a "grandaddy" over all - to oversee all markets. There has also been talk of consolidating the CFTC with the Securities and Exchange Commission (SEC).