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Agricultural Advisory Committee

  • Meeting of the CFTC’s Agricultural Advisory Committee

    Three Lafayette Centre
    1155 21st Street, NW
    Washington, DC 20581
    December 6, 2007


    The Changing Roles of U.S. and Global Markets:
    Speculation, Hedging and Global Competitiveness

    9:00 a.m.

    Commissioner Michael V. Dunn
    Acting Chairman Walter Lukken
    Commissioner Jill E. Sommers
    Commissioner Bart Chilton

    9:10 – 9:30 a.m.

    Changes in Price Discovery and Market Structure: Mike Gorham, Illinois Institute of Technology

    9:30 – 10:45 a.m.

    Panel 1— Role of Speculation in the Agricultural Futures Markets


      CFTC Experience with Revised COT and Regulatory Issues Related to Commodity Index Traders, David Kass, DMO

      • Proposed Rulemaking to Increase Federal Speculative Position Limits, John Fenton, DMO

      • Proposed Rulemaking Concerning an Exemption from Federal Speculative Position Limits for Certain Risk Management Positions,

      • Don Heitman, DMO

      • Presentation of CBOT White Paper, David Lehman, CME-Group

    10:45 – 11:15 a.m.


    11:15 – 12:00 p.m.

    Panel 2— Industry Discussion


      Tom Erikson, Bunge

      Tom Coyle, National Grain and Feed Association

      Dan Brophy, Commodity Markets Council

      • Additional Discussion by Committee Members

    12:00 – 1:15 p.m.


    1:15 – 2:15 p.m.

    The Role of Agricultural OTC Markets


      Summary of Legal Landscape, Don Heitman, DMO

      • Agricultural Swaps Presentation, David Lehman, CME-Group

      • Agricultural Swaps Presentation, Tom Farley, ICE Futures

      • Discussion by Committee Members


    Questions for Discussion may include:

      • Should the CFTC issue a formal definition of an agricultural commodity to provide greater certainty of regulatory treatment?

      • What makes a commodity agricultural: its origins as something that is grown and cultivated; its primary usage (e.g., food, clothing); other factors?

      • Should the by-products of agricultural products be considered agricultural commodities?

      • Is ethanol an agricultural commodity?

      • Should the treatment of agricultural swaps be made to conform more closely to the treatment of non-agricultural swaps (i.e., permit them to be fungible, standardized, and cleared)?

      • Would such treatment be consistent with Congress’ decision to not establish an exclusion/exemption for agricultural swaps in the CFMA?

    2:15 – 3:15 p.m.

    Global Carbon Markets


    William M. Ferretti, Chicago Climate Exchange

    Dave Miller, Iowa Farm Bureau Federation

    Doug Sombke, South Dakota Farmers Union