WASHINGTON, D.C. – A broad national coalition farm, business and consumer groups today urged President Obama to choose a “Main Street” candidate that is supportive of derivative reforms included in last year’s Wall Street Reform law for a soon-to-be-vacant seat at the Commodity Futures Trading Commission (CFTC).
In its letter to the President and key members of Congress, the Commodity Markets Oversight Coalition urged consideration of candidates who believe:
· “That the commodity derivatives markets were established to serve the needs of bona fide commercial hedgers and to discover prices for commodities that are reflective of real-world supply and demand fundamentals;
· That the CFTC should use all tools and authorities at its disposal to carry out its mission of protecting market participants and the American public from fraud, manipulation and the burdens of excessive speculation; and
· That the derivative market reforms included in Title VII of the Dodd-Frank Wall Street Reform Act of 2010 should be fully enacted and vigorously enforced in order to meet the CFTC’s mission and to return stability, transparency and confidence to the commodity markets.”
“When commodities are subject to excessive volatility and unwarranted price spikes, American businesses, consumers and the broader economic recovery is placed in serious jeopardy,” the letter said. “For this reason, it is essential that your nominee acknowledge the importance of open, competitive and functional markets that serve the needs of Main Street before Wall Street and LaSalle Street.”
The coalition offered to meet with the White House to discuss these issues further.
CFTC Commissioner Dunn’s term expires on June 19th. In its letter the coalition commended Mr. Dunn for his service. Some have reported that the President is currently vetting a candidate to replace the Commissioner, who must also be confirmed by the U.S. Senate.
The CMOC is an independent, non-partisan and non-profit alliance of groups that represent commodity-dependent industries, businesses and end-users, including American consumers, that rely on functional, transparent and competitive commodity derivatives markets as a hedging and price discovery tool. The CMOC advocates in favor of government policies that promote stability and confidence in the commodities markets, that seek to prevent fraud, manipulation and excessive speculation, and that preserve the interests of bona fide hedgers and consumers. Visit www.commoditymarketsoversight.org for more information.