From: The Honorable Stephen F. Lynch
Sent By: Jaclyn.Cahan@mail.house.gov
Date: 2/18/2016

Support Full Funding for the Commodity Futures Trading Commission

Deadline Tuesday, March 8, 2016 at 12 p.m.

Dear Colleague:

I write to ask that you join me in urging the Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies to fully fund the Commodity Futures Trading Commission (CFTC) in the fiscal year 2017.

The Dodd-Frank Wall Street Reform and Consumer Protection Act expanded the CFTC’s regulatory and oversight authority to cover over 90 percent of the U.S. derivatives market, trillions of dollars of trading formerly done in the dark. This expanded authority turned the CFTC into one of the most important financial regulators on the forefront of the fight to combat excessive risk taking and speculation on Wall Street. The CFTC now oversees a swaps market that is hundreds of trillions of dollars in size, a more than 40-fold increase from before the financial crisis. Unfortunately, while the CFTC has been given a dramatically expanded mandate, its funding has not expanded at the same rate.

If you would like to sign on to this letter or if you would like additional information, please contact Jaclyn Cahan of my staff atJaclyn.Cahan@mail.house.gov or X58273. Thank you for your consideration.

 

Sincerely,

 

Stephen F. Lynch

Member of Congress (MA-08)

 

 

March X, 2016

The Hon. Hal Rogers                                                  The Hon. Nita Lowey

Chairman                                                                     Ranking Member

House Committee on Appropriations                         House Committee on Appropriations

H-305 The Capitol                                                      1016 Longworth House Office Building

Washington, D.C. 20515                                            Washington, D.C. 20515

 

The Hon. Robert Aderholt                                          The Hon. Sam Farr

Chairman                                                                     Ranking Member

Subcommittee on Agriculture, Rural                          Subcommittee on Agriculture, Rural

Development, Food and Drug Administration,          Development, Food and Drug Administration,

and Related Agencies                                                 and Related Agencies

House Committee on Appropriations                         House Committee on Appropriations

2362-A Rayburn House Office Building                   1016 Longworth House Office Building

Washington, D.C. 20515                                            Washington, D.C. 20515

Dear Chairman Rogers, Ranking Member Lowey, Chairman Aderholt, and Ranking Member Farr:

We write to respectfully request that you fund the Commodity Futures Trading Commission (CFTC) in the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies appropriations bill for fiscal year (FY) 2017 at $330 million, consistent with the CFTC’s request and the President’s FY 2017 budget request. This much needed funding will enable the CFTC to operate effectively and will ensure that the Agency has the resources it needs to guarantee that the U.S. derivatives markets continue to be stable, transparent, competitive and free of fraud and manipulation.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) expanded the CFTC’s regulatory and oversight authority, adding responsibility for over 95 percent of the U.S. swaps market – trillions of dollars of global trading that was formerly done in the dark. This expanded authority turned what was a relatively small agency into one of the most important financial regulators in the fight to combat excessive speculation and the kind of dangerous risk taking that led to the worst financial crisis since the Great Depression. The CFTC’s oversight responsibilities have grown more than 40-fold from before the financial crisis. Unfortunately, while the CFTC has been given a dramatically expanded mandate, its funding has not expanded at the same rate. Notably, the CFTC’s FY2016 funding was held at the same level as FY2015.

Importantly, the CFTC is entering a new phase in fulfilling this mandate, shifting gears from a focus on rulemaking to a more staff-intensive focus on enforcement and surveillance of the vast derivatives market now within its jurisdiction. With this funding, the CFTC will be better able to keep pace with a complex industry that is constantly innovating. It will enable the CFTC to address the technological transformations that are creating new risks to financial stability—such as automated trading and cyberattacks. Without this funding, the CFTC might deem it necessary to delay these efforts.  In our view, that would be unacceptable.

We recognize that the Committee on Appropriations is working under difficult circumstances and is faced with tough choices about spending priorities. According to the Government Accountability Office, the 2008 financial crisis cost the U.S. economy more than $22 trillion dollars. We believe that fully funding the CFTC, an agency tasked with preventing the next financial crisis, at $330 million is money well spent.

Thank you for your consideration of our request.

 

Sincerely,