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FEDERALhearing transcript

Senate Hearing on Regulatory Impacts on Commodity Markets

Original title: REGULATORY ISSUES IMPACTING END-USERS AND MARKET LIQUIDITY

January 1, 2016

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The Frame

What this does

The hearing evaluates whether federal financial regulations intended to stabilize markets are creating unintended costs and operational hurdles for businesses that use to hedge against price fluctuations in commodities like grain and energy.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Farmers and Ranchers

These groups use derivatives to hedge against price volatility in their operations and are subject to the regulatory requirements discussed.

Electric Cooperatives

These entities use derivatives to manage energy price risks and are impacted by the regulatory framework governing these transactions.

Commodity Futures Trading Commission (CFTC)

The agency is responsible for implementing and enforcing the regulations discussed in the hearing.

What changed

Last recorded activity January 1, 2016.

What's next

Next step not available in the current record.

Summary

The Senate Committee on Agriculture, Nutrition, and Forestry held a hearing on May 14, 2015, to examine how financial regulations under the Dodd-Frank Act affect 'end-users'—businesses like farms and energy cooperatives that use to manage commercial risk. The hearing featured testimony from the CFTC Chairman and various industry representatives regarding and regulatory burdens.

Key Facts

  • The hearing took place on May 14, 2015, marking the five-year anniversary period of the Dodd-Frank Act.
  • The committee examined the impact of Dodd-Frank implementation on 'end-users' who use derivatives to hedge commercial risks.
  • End-users are defined as participants like grain companies or electric cooperatives using derivatives to offset operational risks.
  • The hearing included testimony from the CFTC Chairman and two panels of industry stakeholders.
  • The committee received written statements and responses to questions from witnesses regarding regulatory burdens and market liquidity.
  • The record includes a document titled 'The Growth Consequences of Dodd-Frank' submitted by Chairman Roberts.

Frequently Asked Questions

What is an 'end-user' in the context of this hearing?
An end-user is a market participant, such as a farmer, grain company, or electric cooperative, that uses to hedge or manage the commercial risks associated with their normal business operations.
Why was this hearing held?
The committee held the hearing to review the impact of the Dodd-Frank Act on end-users and to discuss concerns regarding regulatory burdens and .

Why It Matters

The hearing evaluates whether federal financial regulations intended to stabilize markets are creating unintended costs and operational hurdles for businesses that use to hedge against price fluctuations in commodities like grain and energy.

News Coverage

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Sponsors

Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift90% confidence

Dodd-Frank Implementation Review

The hearing highlights a concerted effort by the Senate Agriculture Committee to revisit and critique the implementation of Dodd-Frank five years post-passage.

Connected Entities

personPat RobertsChairman of the Senate Committee on Agriculture, Nutrition, and ForestryMap →
organizationArcher Daniels Midland Co.Agricultural processing company represented by Bruce BarberMap →
organizationCommodity Futures Trading CommissionFederal agency responsible for regulating commodity futures and options marketsMap →
organizationCME GroupFinancial market company represented by Terrence A. DuffyMap →
personTimothy MassadChairman of the Commodity Futures Trading Commission (CFTC)Map →

Sources

Open source document

www.govinfo.gov

Analysis Score

0–100
  • Significance65
    How much this matters to a regular citizen
  • Controversy40
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz15
    Current news / social attention level

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