The House Agriculture Committee this week continued its review of the Treasury Department's legislative proposals regulating the over-the-counter (OTC) market for derivatives. Chairman Gary Gensler of the Commodity Futures Trading Commission (CFTC) and Chairman Mary Schapiro of the Securities and Exchange Commission testified before the Committee about the Administration's proposal to regulate OTC products as well as the role of the two agencies in financial market reform legislation.

"I appreciate Chairman Gensler and Chairman Schapiro appearing before the Committee today to discuss their collaboration with the Treasury Department on these proposals," said Committee Chairman Collin C. Peterson of Minnesota. "I agree with some of their ideas and disagree with others, but I think can help us enact strong legislation that can finally bring order to the unregulated over-the-counter derivatives markets while preserving the ability of end users to effectively hedge their price risk."

"I congratulate Chairman Peterson for having the two people most responsible for implementing any kind of regulation over the OTC derivatives market in front of the Agriculture Committee so early in the public policy process," said Ranking Member Frank D. Lucas of Oklahoma. "This has allowed committee members to gain an understanding of the administration's intent. I still have concerns about the language and direction of the Treasury's proposal, but I plan to work with my colleagues to create meaningful legislation that will respect the nature of the marketplace and protect the American people from a financial crisis."

Chairman Gensler of the CFTC and Chairman Schapiro of the SEC were each appearing before the House Agriculture Committee for the first time. The agencies held joint public hearings earlier this month in an effort to coordinate oversight on similar financial
products including OTC derivatives.

Last Thursday, the Committee heard from industry stakeholders regarding Treasury's OTC proposals, with testimony from witnesses representing exchanges, clearinghouse, and end users. Read the press release from the Sept. 17 hearing.

Read the opening statements of all witnesses.

A full transcript of the hearing will be posted on the Committee Web site at a later date.