Today, Congressman Rick Crawford (R-AR) made the case for legislation he drafted to fix a Dodd-Frank provision that threatens to undermine transparency and systemic risk mitigation in the global derivatives market. Crawford questioned U.S. Commodity Futures Trading Commission (CFTC) Chairman Gary Gensler about the need for such legislation. Crawford's bill, H.R. 742, the Swap Data Repository and Clearinghouse Indemnification Correction Act of 2013 received bipartisan support during the House Agriculture Committee Hearing today that examined legislative improvements to Title VII of the Dodd-Frank Act.
During his opening remarks in the Agriculture Committee hearing, Crawford made the case for H.R. 742, the Swap Data Repository and Clearinghouse Indemnification Correction Act of 2013:
"Unlike most of the world, the concept of indemnification is only established within U.S. tort law. As a result, foreign regulators have been reluctant to comply with this provision, and international regulatory coordination is being thwarted. While the idea of the provision was to protect market confidentiality, in practice, it threatens to fragment global data on swap markets. Foreign regulators would be forced to create their own SDRs, resulting in a fragmented global data framework where regulators can't possibly see a complete picture of the marketplace. Without effective coordination between international regulators and SDRs, monitoring and mitigating global systemic risk is severely limited. H.R. 742 fixes this problem altogether. And while the CFTC seeks to clarify this provision through interpretive guidance, all indications are that there is no viable solution without adopting my legislation."
During questioning, CFTC Chairman Gensler agreed that a fix was needed to address the indemnification provision, but stopped short of endorsing Crawford's bill. Commissioners Sommers, O'Malia, and Chilton -- along with the Securities and Exchange Commission -- are all on record in support of the legislation.
Congressman Rick Crawford represents Arkansas's First Congressional District in the United States House of Representatives. Crawford serves on the Agriculture Committee and the Transportation and Infrastructure Committee. On the Agriculture Committee, Crawford is Chairman of the Livestock, Rural Development and Credit Subcommittee. Congressman Crawford and his wife Stacy live in Jonesboro with their two children. Click HERE to learn more about Congressman Crawford.