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October 19, 2000
(House)
H.R. 4541 - Commodity Futures Modernization Act of 2000
(Rep. Ewing (R) Illinois and 3 cosponsors)
The Administration strongly supports the version of H.R. 4541, the Commodity
Futures Modernization Act of 2000, that the Administration understands will be
considered on the House floor. This legislation would reauthorize the Commodity
Futures Trading Commission (CFTC) and modernize the Nation's legal and
regulatory framework regarding over-the-counter (OTC) derivatives transactions
and markets. In so doing, H.R. 4541 also would implement many of the unanimous
recommendations regarding the treatment of OTC derivatives made by the
President's Working Group on Financial Markets, which includes the Secretary of
the Treasury and the Chairmen of the Federal Reserve Board of Governors, the
Securities and Exchange Commission, and the Commodity Futures Trading
Commission.
It is important that this legislation be enacted this year because of the
meaningful steps it would take in helping to: promote innovation; enhance the
transparency and efficiency of derivative markets; maintain the competitiveness
of U.S. businesses and markets; and, potentially, reduce systemic risk. H.R.
4541 would accomplish these goals while assuring adequate customer protection
for small investors and protecting the integrity of the underlying securities
and futures markets. A failure to modernize the Nation's framework for OTC
derivatives during this legislative session would deprive American markets and
businesses of these important benefits and could result in the movement of these
markets to overseas locations with more updated regulatory regimes. The
Administration looks forward to working with members of Congress to improve
certain aspects of the bill as it continues through the legislative process.
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