Release:             4500-01
For Release:     March 26, 2001

CFTC’s Agricultural Advisory Committee to Meet Wednesday, March 28, 2001

    The Commodity Futures Trading Commission's (CFTC) Agricultural Advisory Committee (AAC), chaired by Commissioner David D. Spears, will hold its 29th meeting on Wednesday, March 28, 2001, from 1:30 to 5:00 p.m., at the Commission’s Washington, D.C. headquarters, Three Lafayette Centre, 1155 21st Street, N.W., in the first floor hearing room. The meeting is open to the public.

    The first item on the Committee’s agenda will be a briefing by CFTC staff on the provisions of the Commodity Futures Modernization Act of 2000 (CFMA) and the proposed New Regulatory Framework, published for comment on March 9, which is intended to implement the CFMA. The CFMA represents the most significant change in the US futures regulatory system since the 1974 legislation that created the CFTC. Staff members will brief the Committee on those provisions of the CFMA and the proposed New Regulatory Framework that are of particular significance to the agricultural community. A separate briefing will cover a CFMA provision aimed specifically at agriculture entitled, "Special Procedures to Facilitate and Encourage Bona Fide Hedging by Agricultural Producers."

    Another agenda topic is entitled, "Review of Agricultural Trade Options and Other Risk Management Alternatives in Light of CFMA and Proposed Regulatory Changes." The members of the Committee and a panel of guest speakers will discuss future Commission policy with respect to agricultural trade options and other agricultural derivatives contracts, including the appropriate role of introducing brokers, who are often the front-line providers of risk management services to farmers.

    Other items on the meeting agenda include briefings and discussion concerning the Warehouse Act of 2000 and its implications for agriculture; current activities by the USDA’s Risk Management Agency; and recent developments in electronic derivatives trading.

    The AAC was created by the CFTC to advise the Commission on agricultural issues. For further information about the AAC meeting, contact Debyn Brown at (202) 418-5040.