This hearing, the third in a series of CFTC reauthorization hearings, focused on the views of the derivative end-users. Chairman Conaway set the hearing’s tone in his opening remarks by saying that the CFTC continues to overreach in the implementation of the Dodd/Frank Act and that this would ultimately lead to higher prices for consumers. Ranking Member Scott added a new dimension to the hearing by suggesting the reauthorization should include a provision to prevent Wall Street entities from ownership participation in commodity related holdings.
The six witness represented derivative end user. Their testimony asked that the the reauthorization bill directly amend or repeal parts of the new Dodd/Frank regulations that, to the most part, had just been put in place. Members of the Committee were sympathetic to the expressed concerns giving cause for many to believe a reauthorization debate would be little more than the re-legislating of the Dodd/Frank law.