Risk Management

The CME Group on Dec. 2 issued a Special Executive Report (SER) announcing increases in exchange transaction fees for CBOT agricultural futures and options effective Feb. 1, 2020. Generally, futures and options transaction fees are scheduled to increase by 3 cents for individual and equity members of the exchange for both open outcry and Globex trades. The announced changes are summarized in this table.  The SER from CME announcing fee changes for agricultural trades and other CME contracts can be accessed here. ... Read More

By Todd Kemp, Senior Vice President, Treasurer In an increasingly rare display of bipartisanship, the House Agriculture Committee on Oct. 30 unanimously approved legislation to reauthorize the operations of the Commodity Futures Trading Commission (CFTC) through 2025.  The bill (H.R. 2895) is the product of collaboration between committee Chairman Collin Peterson, D-Minn., and ranking member Mike Conaway, R-Texas. Committee members noted during the business meeting to approve the bill that the CFTC has been operating without congressional authorization since 2013. While ... Read More

By Todd Kemp, Senior Vice President of Marketing and Treasurer The House Agriculture Committee this week released a discussion draft of legislation that would reauthorize the Commodity Futures Trading Commission (CFTC), which has been operating without congressional authorization for several years.  While the lack of authorizing legislation has had no appreciable impact on the agency’s work, such a bill often is a vehicle for Congress to express its will on policy matters and to codify and clarify CFTC policies. The draft legislation would authorize CFTC operations for ... Read More

Heath Tarbert, who officially began his term as the chairman of the Commodity Futures Trading Commission (CFTC) on July 15, took the time to answer several questions posed by NGFA about the rulemaking agenda for the agency under his leadership. Tarbert was nominated by President Trump and approved unanimously by the Senate Agriculture Committee before being confirmed as chairman by the Senate in June with a broad, bipartisan vote of 84-9. The NGFA authored and coordinated a letter signed by 25 national production agriculture and agribusiness groups in support of Tarbert’s confirmation, ... Read More

By Todd Kemp, Senior Vice President The Internal Revenue Service (IRS) on June 19 published long-awaited proposed rules to provide guidance on Section 199A of the U.S. tax code.  This particular proposal by the IRS addresses primarily the deduction for qualified business income of producers who are patrons of a cooperative, as well as Section 199A calculations for cooperatives. An additional set of final IRS regulations, published in early 2019, more clearly defined entities eligible for the Section 199A deduction. The June 19 proposal includes a 60-day public comment period, with ... Read More

By Sarah Gonzalez, Director of Communications and Digital Media The Commodity Futures Trading Commission (CFTC) should take an active role in assessing and addressing the risks of climate change, CFTC Commissioner Rostin (Russ) Behnam said this week. “Failing to address financial market risks associated with climate change will impede economic growth, and most likely hit rural communities the hardest,” Behnam said in a speech at CFTC’s Market Risk Advisory Committee meeting on June 12.  Behnam said the committee should identify market risks and recommend “data-driven policy ... Read More

By Todd Kemp, Senior Vice President for Marketing, Treasurer; and Sarah Gonzalez, Director of Communications and Digital Media Commodity Futures Trading Commission (CFTC) Commissioner Dawn Stump said her staff is diligently working with other commissioners on a speculative position limits rulemaking, but didn’t give a timeline for a proposal, during a June 11 address in New York City to the Annual Legal Forum of the International Swaps and Derivatives Association (ISDA).  ISDA was one of the organizations that challenged speculative position limits in court in late 2011. Since that ... Read More

The Senate by an overwhelming 84-9 vote confirmed Heath Tarbert on June 5 as chairman of the Commodity Futures Trading Commission (CFTC). A Republican who currently serves as assistant secretary of the treasury for international affairs, Tarbert will succeed fellow Republican Chris Giancarlo. He is expected to be sworn in officially in mid-July, with Giancarlo leaving CFTC around that same time. During testimony at his Senate Agriculture Committee confirmation hearing earlier this year, Tarbert stressed the CFTC’s special obligation to “…ensur(e) that our derivatives markets are ... Read More

By Todd Kemp, Senior Vice President and Treasurer Commodity Futures Trading Commission (CFTC) Chairman Christopher Giancarlo provided an update on current issues at the agency – and on remaining priorities as he prepares to step down from his position in coming weeks – during a May 1 subcommittee hearing of the House Agriculture Committee. Subcommittee chairman David Scott, D-Ga., opened the hearing with a reminder that the House has three times approved legislation to reauthorize the CFTC, but the Senate has not followed suit. While authorizing legislation is not absolutely ... Read More