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Hearing Committee on Agriculture House Of HEARING TO REVIEW IMPLEMENTATION OF PROVISIONS OF THE DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT RELATING TO POSITION LIMITS HEARING BEFORE THE SUBCOMMITTEE ON GENERAL FARM COMMODITIES AND RISK MANAGEMENT OF THE COMMITTEE ON AGRICULTURE HOUSE OF REPRESENTATIVES ONE HUNDRED ELEVENTH CONGRESS SECOND SESSION DECEMBER 15, 2010 Serial No. 111–60 ( Printed for the use of the Committee on Agriculture agriculture.house.gov U.S. GOVERNMENT PRINTING OFFICE 63–105 PDF WASHINGTON : 2011 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate 0ct 09 2002 13:56 Feb 09, 2011 Jkt 041481 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 I:\DOCS\111-60\63105.TXT AGR1 PsN: BRIAN COMMITTEE ON AGRICULTURE COLLIN C. PETERSON, Minnesota, Chairman TIM HOLDEN, Pennsylvania, FRANK D. LUCAS, Oklahoma, Ranking Vice Chairman Minority Member MIKE MCINTYRE, North Carolina BOB GOODLATTE, Virginia LEONARD L. BOSWELL, Iowa JERRY MORAN, Kansas JOE BACA, California TIMOTHY V. JOHNSON, Illinois DENNIS A. CARDOZA, California SAM GRAVES, Missouri DAVID SCOTT, Georgia MIKE ROGERS, Alabama JIM MARSHALL, Georgia STEVE KING, Iowa STEPHANIE HERSETH SANDLIN, South RANDY NEUGEBAUER, Texas Dakota K. MICHAEL CONAWAY, Texas HENRY CUELLAR, Texas JEFF FORTENBERRY, Nebraska JIM COSTA, California JEAN SCHMIDT, Ohio BRAD ELLSWORTH, Indiana ADRIAN SMITH, Nebraska TIMOTHY J. WALZ, Minnesota DAVID P. ROE, Tennessee STEVE KAGEN, Wisconsin BLAINE LUETKEMEYER, Missouri KURT SCHRADER, Oregon GLENN THOMPSON, Pennsylvania DEBORAH L. HALVORSON, Illinois BILL CASSIDY, Louisiana KATHLEEN A. DAHLKEMPER, CYNTHIA M. LUMMIS, Wyoming Pennsylvania THOMAS J. ROONEY, Florida BOBBY BRIGHT, Alabama BETSY MARKEY, Colorado FRANK KRATOVIL, JR., Maryland MARK H. SCHAUER, Michigan LARRY KISSELL, North Carolina JOHN A. BOCCIERI, Ohio SCOTT MURPHY, New York WILLIAM L. OWENS, New York EARL POMEROY, North Dakota TRAVIS W. CHILDERS, Mississippi WALT MINNICK, Idaho PROFESSIONAL STAFF ROBERT L. LAREW, Chief of Staff ANDREW W. BAKER, Chief Counsel LIZ FRIEDLANDER, Communications Director NICOLE SCOTT, Minority Staff Director SUBCOMMITTEE ON GENERAL FARM COMMODITIES AND RISK MANAGEMENT LEONARD L. BOSWELL, Iowa, Chairman JIM MARSHALL, Georgia JERRY MORAN, Kansas, Ranking Minority BRAD ELLSWORTH, Indiana Member TIMOTHY J. WALZ, Minnesota TIMOTHY V. JOHNSON, Illinois KURT SCHRADER, Oregon SAM GRAVES, Missouri STEPHANIE HERSETH SANDLIN, South STEVE KING, Iowa Dakota K. MICHAEL CONAWAY, Texas BETSY MARKEY, Colorado BLAINE LUETKEMEYER, Missouri LARRY KISSELL, North Carolina THOMAS J. ROONEY, Florida DEBORAH L. HALVORSON, Illinois EARL POMEROY, North Dakota TRAVIS W. CHILDERS, Mississippi ALETA BOTTS, Subcommittee Staff Director (II) VerDate 0ct 09 2002 13:56 Feb 09, 2011 Jkt 041481 PO 00000 Frm 00002 Fmt 0486 Sfmt 0486 I:\DOCS\111-60\63105.TXT AGR1 PsN: BRIAN C O N T E N T S Page Boswell, Hon. Leonard L., a Representative in Congress from Iowa, opening statement .............................................................................................................. 1 Prepared statement .......................................................................................... 3 Lucas, Hon. Frank D., a Representative in Congress from Oklahoma, opening statement .............................................................................................................. 8 Moran, Hon. Jerry, a Representative in Congress from Kansas, opening state- ment ...................................................................................................................... 4 Prepared statement .......................................................................................... 6 Peterson, Hon. Collin C., a Representative in Congress from Minnesota, open- ing statement ........................................................................................................ 7 Prepared statement .......................................................................................... 8 WITNESSES Gensler, Hon. Gary, Chairman, Commodity Futures Trading Commission, Washington, D.C. ................................................................................................. 9 Prepared statement .......................................................................................... 11 Chilton, Hon. Bart, Commissioner, Commodity Futures Trading Commission, Washington, D.C. ................................................................................................. 14 Prepared statement .......................................................................................... 16 Collura, James M., Vice President for Government Affairs, New England Fuel Institute; Founding Member and Spokesman, Commodity Markets Oversight Coalition, Washington, D.C. .............................................................. 35 Prepared statement .......................................................................................... 37 Duffy, Terrance A., Executive Chairman, CME Group Inc., Chicago, IL ........... 42 Prepared statement .......................................................................................... 43 Newman, Joel G., President and CEO, American Feed Industry Association, Arlington, VA ........................................................................................................ 47 Prepared statement .......................................................................................... 49 Sprecher, Jeffrey C., Chairman and CEO, IntercontinentalExchange, Inc., Atlanta, GA ........................................................................................................... 53 Prepared statement .......................................................................................... 54 Jones, Robert, Senior Vice President, ABN AMRO Clearing Chicago LLC; Member, Risk Management Committee, National Grain and Feed Associa- tion, Chicago, IL ................................................................................................... 56 Prepared statement .......................................................................................... 57 (III) VerDate 0ct 09 2002 13:56 Feb 09, 2011 Jkt 041481 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 I:\DOCS\111-60\63105.TXT AGR1 PsN: BRIAN VerDate 0ct 09 2002 13:56 Feb 09, 2011 Jkt 041481 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 I:\DOCS\111-60\63105.TXT AGR1 PsN: BRIAN HEARING TO REVIEW IMPLEMENTATION OF PROVISIONS OF THE DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT RELATING TO POSITION LIMITS WEDNESDAY, DECEMBER 15, 2010 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON GENERAL FARM COMMODITIES AND RISK MANAGEMENT, COMMITTEE ON AGRICULTURE, Washington, D.C. The Subcommittee met, pursuant to call, at 10:00 a.m., in Room 1300, Longworth House Office Building, Hon. Leonard L. Boswell [Chairman of the Subcommittee] presiding. Members present: Representatives Boswell, Schrader, Kissell, Pe- terson (ex officio), Marshall, Murphy, Moran, Johnson, Conaway, Luetkemeyer, Lucas (ex officio), and Neugebauer. Staff present: Aleta Botts, Liz Friedlander, John Konya, Clark Ogilvie, Rebekah Solem, Tamara Hinton, Kevin Kramp, Josh Mathis, Jamie Mitchell, and Sangina Wright. OPENING STATEMENT OF HON. LEONARD L. BOSWELL, A REPRESENTATIVE IN CONGRESS FROM IOWA The CHAIRMAN. The hearing of the Subcommittee on General Farm Commodities and Risk Management to review implementa- tion of provisions of the Dodd-Frank Wall Street Reform and Con- sumer Protection Act relating to position limits will come to order. I would like to thank everybody for joining us today as we review where we are at on the implementation provisions of the Dodd- Frank regulatory reform law relating to position limits. This hearing is very timely, as just recently the CEO of Sanderson Farms said it was delaying forward purchase of feed until the CFTC had issued position limit rules, and that he doesn’t like to buy grain when ‘‘index funds own 25–30 percent of the crop.’’ So I wouldn’t say that is why we are here today. I would like to review where we are at on this. I see that Chairman Peterson has joined us and I would like to take a moment, if I could, and divert from the hearing and recog- nize the outstanding work and dedication of Chairman Collin Pe- terson for leading this Committee through some of the most chal- lenging times that the agriculture community has faced since the farm crisis of the 1980s. Specifically, he has championed the bring- ing of oversight and transparency to the derivatives market to pro- (1) VerDate 0ct 09 2002 13:56 Feb 09, 2011 Jkt 041481 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 I:\DOCS\111-60\63105.TXT AGR1 PsN: BRIAN 2 tect end-users. And if everyone will indulge me, I would like to take a moment and thank Chairman Peterson. Thank you, Collin Peterson. We have Members who will be leaving us for different reasons, and we are going to give them a sad farewell as we work through this process today. And I am sure I will have an opportunity to rec- ognize Mr. Moran, as he is going on to his new endeavors, and all the rest to their new endeavors. I might just at this moment add that my very special assistant, Alexis Taylor, from east Iowa, is going to be leaving our office and going over to the Senate. She is going to be the legislative assistant for Senator Baucus. So we congratulate her on her, I guess we could say, promotion. She will be very involved there for the next farm
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