Washington, D.C. – Congresswoman Rosa L. DeLauro (CT-3) joined with her colleagues to pass on a bipartisan basis (283-133) the Commodity Market Transparency and Accountability Act (H.R. 6604). The legislation would bring greater transparency to the energy markets, which is aimed at improving price discovery and risk mitigation functions will work to benefit producers, processors and consumers.

DeLauro, who serves chairwoman of the Agriculture – Food and Drug Administration, Appropriations Subcommittee, which includes the Commodities Future Trading Commission, coordinated with Congressmen John Larson (D-CT), Bart Stupak (D-MI) and Chris Van Hollen (D-MD) to work with Agriculture Committee Chairman Collin Peterson (D-MN) to craft the Commodity Market Transparency and Accountability Act (H.R. 6604).

“Today, we can point to loopholes and exemptions that have allowed interested parties with special access or information to improperly speculate on the price of energy without oversight. Given the growing turmoil in the financial markets, it is clear that responsible regulation of the market does have a role in ensuring its stability. This legislation will help bring that critical stability to our energy markets,” said DeLauro. “There is a growing disconnect between where supply and demand would normally put our market, and where it actually is today. Our economy swings in the balance. It is time to empower the Commodity Futures Trading Commission to do its regulatory job and provide relief for Americans in need.”

Two reports were issued last week that lend support to the legislative fix. A report by the CFTC recommended a significant increase in the transparency of energy markets, more careful analysis of the data and even a reclassification of swap dealers. Additionally, a report by hedge fund managers Michael Masters and Adam White pointed to institutional investors pouring money into energy futures and contributing to rising prices, as well as the removal of those funds then helping to lower prices.

The Commodity Market Transparency and Accountability Act (H.R. 6604) would take crucial steps to curb excessive speculation in the energy futures markets by directing the CFTC to:

Require foreign boards of trade to share trading data and adopt speculative position limits on contracts that trade U.S. commodities similar to U.S.-regulated exchanges.

Require the Commodity Futures Trading Commission (CFTC) to set trading limits for all agricultural and energy commodities, in order to prevent excessive speculation.

Limit eligibility for hedge exemptions to bona-fide hedgers.

Codify CFTC recommendations to improve transparency in dark markets by disaggregating index fund and other data in energy and agricultural markets as well as requiring detailed reporting from index traders and swap dealers.

Authorize CFTC to take action if it finds disruption in over-the-counter markets for energy and gas.

Require the CFTC to study the effectiveness of establishing position limits in over-the-counter markets.

Strengthening Enforcement to Prevent Market Manipulation – calls for a minimum of 100 full-time CFTC employees to strengthen enforcement, to prevent manipulation and to prosecute fraud. Despite record trading volume in the futures markets, increasing 8000 percent, CFTC staffing is at its lowest level since the agency was created in 1974.

Establishes an independent office for the CFTC Inspector General.