Farmers, elevators and businesses would have until the end of the day following a futures trade to cover their margin accounts under a bill filed by Senate Agriculture chairman Pat Roberts of Kansas and Sen. Heidi Heitkamp of North Dakota. The time span is the same as a recently enacted CFTC rule. CFTC had considered shortening the deadline to as soon as the close of business on the day of the trade. Roberts and Heitkamp said their bill would ensure CFTC does not change its mind.
The Roberts-Heitkamp bill will be rolled into a broader CFTC reauthorization this year, said the Agriculture Committee.
“As the Senate Agriculture Committee works to reauthorize the CFTC, I am prioritizing the protection of end-users, like the folks at the local grain elevator, from over-burdensome or unrealistic regulations,” said Roberts in a statement.
The bill also would repeal a provision of the Dodd-Frank financial reform law that Roberts said has impeded the sharing of market data with overseas regulators.
The House passed a reauthorization bill earlier this week. It creates new safeguards against misuse of customer accounts, relaxes regulation of companies that use futures markets to assure a supply and lock in the price of raw materials, and revamps the way the agency writes regulations. The White House has threatened to veto the House bill, saying it obstructs CFTC operations and does not assure sufficient funding.