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