The House Agricultural Committee on Wednesday will discuss whether to extend CFTC oversight of derivatives exchanges to over-the-counter markets and any “electronic trading facility,” according to a proposal before the committee.
One issue in the debate over the Commodity Futures Trading Commission reauthorization that occurs every five years is increasing regulatory supervision of OTC futures markets, following Amaranth Advisors’ alleged attempt to manipulate energy prices. The CFTC is suing the former hedge fund on those charges, but so is the Federal Energy Regulatory Commission.
A financial industry coalition is calling for the CFTC to be recognized as exclusive regulator in the Amaranth suit to avoid creating multiple legal standards. The coalition includes the Futures Industry Association, the Managed Funds Association, CME Group, New York Mercantile Exchange and the International Swaps and Derivatives Association.
