Futures, Securities Bills Being Prepared for House Vote

A House committee is scheduled Jan. 10 to set up rules for floor debate on a bill to reauthorize the Commodity Futures Trading Commission.

The Rules Committee also will consider a bill (H.R. 78) that day that would ratchet up the cost-benefit analysis for Securities and Exchange Commission rulemaking, including requiring the agency to conclude that the “benefits of the intended regulation justify the costs.”

Floor votes on the bills could come anytime after the committee acts.

The CFTC bill (H.R. 238) was introduced Jan. 4 by Rep. Michael Conaway (R-Texas), chairman of the House Agriculture Committee.

Similar Measure

The committee’s spokeswoman told Bloomberg BNA the measure is substantially similar to a CFTC reauthorization bill passed by the House in 2015. It includes major sections on futures customer protections, regulatory relief for commercial users of derivatives and CFTC reforms.

Its similarity to the 2015 bill and one passed the year before makes it possible to move the legislation straight to the floor.

H.R. 78, sponsored by Rep. Ann Wagner (R-Mo.), would apply a similar cost-benefit requirement as that proposed for the SEC to rules by the Public Company Accounting Oversight Board, Municipal Securities Rulemaking Board and Financial Industry Regulatory Authority.

The measure would also require the SEC to revisit all of its rules every five years to determine whether they are “outmoded, ineffective, insufficient, or excessively burdensome” and modify them accordingly.

The committee is also taking up a bill (H.R. 79) to ease restrictions on how start-up companies may connect with angel investors at “demo days” or venture capital expos.

Massad Speaking

CFTC Chairman Timothy Massad will speak Jan. 10 in London at an event co-hosted by the Systemic Risk Centre and the Law and Financial Markets Project. The chairman is scheduled to speak on the future of financial regulation in the wake of the 2016 U.S. elections and Brexit.

Massad has announced that he will step down as chairman Jan. 20 to make room for a successor of President-elect Donald Trump’s choosing.

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