To reauthorize the Commodity Futures Trading Commission, to better protect futures customers, to provide end users with market certainty, to make basic reforms to ensure transparency and accountability at the Commission, to help farmers, ranchers, and end users manage risks to help keep consumer costs low, and for other purposes.
One provision of the bill was the inclusion of the provisions of H.R. 742, the Swap Data Repository and Clearinghouse Indemnification Correction Act of 2013.[1] This previous bill dealt with "issues surrounding the indemnification provisions and confidentiality requirements of Dodd-Frank."[1]
Another provision of the bill was the inclusion of the Business Risk Mitigation and Price Stabilization Act of 2013 (H.R. 634), a bill that would exempt nonfinancial entities that enter into a swap or a security-based swap transaction from meeting certain margin requirements when the transaction is designed to offset losses or gains in other investments.[3][4]
The bill also includes some of the provisions from H.R. 677, the Inter-Affiliate Swap Clarification Act.[4]
Congressional Budget Office report
This summary is based largely on the summary provided by the Congressional Budget Office, as ordered reported by the House Committee on Agriculture on April 9, 2014. This is a public domain source.[2]
H.R. 4413 would authorize appropriations for the Commodity Futures Trading Commission (CFTC) through 2018 and make changes in some of the agency’s operating procedures. The bill also would amend the Commodity Exchange Act to provide greater protections for customer funds held by entities that broker transactions in commodity futures and to relax requirements on certain participants in swap transactions in a number of different circumstances. (A swap is a contract that calls for an exchange of cash between two participants, based on an underlying rate or index or on the performance of an asset.)[2]
The Congressional Budget Office (CBO) estimates that implementing H.R. 4413 would cost $207 million in 2015 and $948 million over the 2015-2019 period, assuming appropriation of the necessary amounts. The CBO expects that enacting H.R. 4413 would affect direct spending and revenues; therefore, pay-as-you-go procedures apply. However, the CBO estimates that those effects would not be significant.[2]
The Depository Trust & Clearing Corporation supported the bill, arguing the provisions from H.R. 742, included in this bill, would "help ensure that regulators and the public continue to have access to a consolidated and accurate view of the global marketplace, including concentrations of risk and market exposure."[1]
The Business Roundtable, an industry trade organization, wrote a letter to members of the House strongly endorsing the bill.[4] According to the Business Roundtable letter, a survey of chief financial officers and corporate treasurers "underscores the urgent need for the end-user provisions" in this bill because "eighty-six percent of respondents indicated the fully collateralizing over-the-counter (OTC) derivatives would adversely impact business investment, acquisitions, research and development, and job creation."[4] The letter concluded that the Business Roundtable "supports efforts to increase transparency in the derivatives markets and enhance financial stability for the U.S. economy through thoughtful new regulation while avoiding needless costs."[4]
The group Americans for Financial Reform opposed the bill, arguing that "the legislation would place significant new barriers in the way of effective oversight of commodities and derivatives markets crucial to our economy, barriers not faced by any other regulatory agency."[7] Americans for Financial Reform charged that the bill would give financial industry interests more power over regulators and the ability to delay or prevent the CFTC from acting.[7] The organization also charged that insufficient time was allowed for the public to review the legislation before the House Agriculture Committee voted on it.[7]
^ abcdePagliocca, Theresa (14 April 2014). "Customer Protection and End-User Relief Act (H.R. 4413) Receives House Committee Approval". DTCC. Retrieved 18 June 2014.
^ abcde"CBO - H.R. 4413". Congressional Budget Office. 19 May 2014. Retrieved 18 June 2014.
^"CBO - H.R. 634". Congressional Budget Office. 11 April 2013. Retrieved 13 June 2013.
^ abcdeCutler, Alexander M. (16 June 2014). "BRT Letter to House on the Customer Protection and End-User Relief Act". Business Roundtable. Retrieved 18 June 2014.
^ ab"H.R. 4413 - All Actions". United States Congress. Retrieved 18 June 2014.
^Marcos, Cristina (16 June 2014). "This week: Spending bills, VA reform, leadership races". The Hill. Retrieved 18 June 2014.
^ abc"Letter to the House from Americans for Financial Reform" (PDF). Americans for Financial Reform. 9 April 2014. Retrieved 18 June 2014.
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Portal:Acts of the United States Congresses/Acts of the 113th United States Congress
customer, protection, user, relief, 4413, bill, that, would, have, reauthorized, commodity, futures, trading, commission, through, 2018, amended, some, provisions, dodd, frank, wall, street, reform, consumer, protection, long, titleto, reauthorize, commodity, . The Customer Protection and End User Relief Act H R 4413 was a bill that would have reauthorized the Commodity Futures Trading Commission through 2018 and amended some provisions of the Dodd Frank Wall Street Reform and Consumer Protection Act 1 2 Customer Protection and End User Relief ActLong titleTo reauthorize the Commodity Futures Trading Commission to better protect futures customers to provide end users with market certainty to make basic reforms to ensure transparency and accountability at the Commission to help farmers ranchers and end users manage risks to help keep consumer costs low and for other purposes Announced inthe 113th United States CongressSponsored byRep Frank D Lucas R OK 3 Number of co sponsors3CodificationU S C sections affected7 U S C 2 7 U S C 1a 7 U S C 6s 7 U S C 21 7 U S C 24a and others Agencies affectedU S Securities and Exchange Commission African Development Fund Government Accountability Office Inter American Development Bank U S Court of Appeals for the Federal Circuit International Monetary Fund United Nations International Bank for Reconstruction and Development Asian Development Bank Commodity Futures Trading CommissionAuthorizations of appropriationsan unlimited amount for each of fiscal years 2014 2015 2016 2017 and 2018Legislative historyIntroduced in the House as H R 4413 by Rep Frank D Lucas R OK 3 on April 7 2014Committee consideration by United States House Committee on AgricultureThe bill was introduced into the United States House of Representatives during the 113th United States Congress Contents 1 Provisions of the bill 2 Congressional Budget Office report 3 Procedural history 4 Debate and discussion 5 See also 6 References 7 External linksProvisions of the bill EditOne provision of the bill was the inclusion of the provisions of H R 742 the Swap Data Repository and Clearinghouse Indemnification Correction Act of 2013 1 This previous bill dealt with issues surrounding the indemnification provisions and confidentiality requirements of Dodd Frank 1 Another provision of the bill was the inclusion of the Business Risk Mitigation and Price Stabilization Act of 2013 H R 634 a bill that would exempt nonfinancial entities that enter into a swap or a security based swap transaction from meeting certain margin requirements when the transaction is designed to offset losses or gains in other investments 3 4 The bill also includes some of the provisions from H R 677 the Inter Affiliate Swap Clarification Act 4 Congressional Budget Office report EditThis summary is based largely on the summary provided by the Congressional Budget Office as ordered reported by the House Committee on Agriculture on April 9 2014 This is a public domain source 2 H R 4413 would authorize appropriations for the Commodity Futures Trading Commission CFTC through 2018 and make changes in some of the agency s operating procedures The bill also would amend the Commodity Exchange Act to provide greater protections for customer funds held by entities that broker transactions in commodity futures and to relax requirements on certain participants in swap transactions in a number of different circumstances A swap is a contract that calls for an exchange of cash between two participants based on an underlying rate or index or on the performance of an asset 2 The Congressional Budget Office CBO estimates that implementing H R 4413 would cost 207 million in 2015 and 948 million over the 2015 2019 period assuming appropriation of the necessary amounts The CBO expects that enacting H R 4413 would affect direct spending and revenues therefore pay as you go procedures apply However the CBO estimates that those effects would not be significant 2 H R 4413 contains no intergovernmental or private sector mandates as defined in the Unfunded Mandates Reform Act 2 Procedural history EditThe Customer Protection and End User Relief Act was introduced into the United States House of Representatives on April 7 2014 by Rep Frank D Lucas R OK 3 5 The bill was referred to the United States House Committee on Agriculture which ordered it reported by a voice vote on April 9 2014 1 It was reported alongside House Report 113 469 on June 5 2014 5 The House was scheduled to debate and vote on the bill on June 20 2014 6 Debate and discussion EditThe Depository Trust amp Clearing Corporation supported the bill arguing the provisions from H R 742 included in this bill would help ensure that regulators and the public continue to have access to a consolidated and accurate view of the global marketplace including concentrations of risk and market exposure 1 The Business Roundtable an industry trade organization wrote a letter to members of the House strongly endorsing the bill 4 According to the Business Roundtable letter a survey of chief financial officers and corporate treasurers underscores the urgent need for the end user provisions in this bill because eighty six percent of respondents indicated the fully collateralizing over the counter OTC derivatives would adversely impact business investment acquisitions research and development and job creation 4 The letter concluded that the Business Roundtable supports efforts to increase transparency in the derivatives markets and enhance financial stability for the U S economy through thoughtful new regulation while avoiding needless costs 4 The group Americans for Financial Reform opposed the bill arguing that the legislation would place significant new barriers in the way of effective oversight of commodities and derivatives markets crucial to our economy barriers not faced by any other regulatory agency 7 Americans for Financial Reform charged that the bill would give financial industry interests more power over regulators and the ability to delay or prevent the CFTC from acting 7 The organization also charged that insufficient time was allowed for the public to review the legislation before the House Agriculture Committee voted on it 7 See also EditList of bills in the 113th United States CongressReferences Edit a b c d e Pagliocca Theresa 14 April 2014 Customer Protection and End User Relief Act H R 4413 Receives House Committee Approval DTCC Retrieved 18 June 2014 a b c d e CBO H R 4413 Congressional Budget Office 19 May 2014 Retrieved 18 June 2014 CBO H R 634 Congressional Budget Office 11 April 2013 Retrieved 13 June 2013 a b c d e Cutler Alexander M 16 June 2014 BRT Letter to House on the Customer Protection and End User Relief Act Business Roundtable Retrieved 18 June 2014 a b H R 4413 All Actions United States Congress Retrieved 18 June 2014 Marcos Cristina 16 June 2014 This week Spending bills VA reform leadership races The Hill Retrieved 18 June 2014 a b c Letter to the House from Americans for Financial Reform PDF Americans for Financial Reform 9 April 2014 Retrieved 18 June 2014 External links Edit Wikisource has original text related to this article Portal Acts of the United States Congresses Acts of the 113th United States Congress Library of Congress Thomas H R 4413 beta congress gov H R 4413 GovTrack us H R 4413 OpenCongress org H R 4413 WashingtonWatch com H R 4413 permanent dead link Congressional Budget Office s report on H R 4413 House Agriculture Committee s summary of H R 4413 House Agriculture Committee s info page on the legislative process of H R 4413 House Report 113 469 on H R 4413 This article incorporates public domain material from websites or documents of the United States Government Retrieved from https en wikipedia org w index php title Customer Protection and End User Relief Act amp oldid 1104070172, wikipedia, wiki, book, books, library,
