Statement of Commissioner Bart Chilton on the Increasing Transparency and Accountability in Oil Markets Act

June 13, 2008

I am grateful for the leadership of Senator Durbin and others who have introduced the Increasing Transparency and Accountability in Oil Markets Act.

This legislation will put added ammunition in the Commodity Futures Trading Commission's regulatory arsenal to fight fraud, abuse, and manipulation in the oil markets - markets that are so vitally important to American consumers.

Simply stated, the CFTC will not be able to continue to do its job effectively without this legislation.

I am especially grateful to Senators Levin and Feinstein who have worked on energy-related derivatives issues over the years. The success they have had in passing legislation this year that ends the so-called "Enron Loophole" will allow greater oversight of our domestic energy derivatives markets. The provision contained in today's legislation will add even greater transparency to foreign derivatives markets. Closing the so-called "London-Dubai Loophole" will successfully address a critical gap in U.S. commodities legislation. It will ensure that the trading of look-alike oil contracts in London markets (and potentially in Dubai) that mirror trading in U.S. markets, will be done so in a manner that assures that the CFTC has additional oversight tools to monitor these important energy markets.

I have spoken about the need to provide the CFTC with the resources to accomplish our regulatory mission. Senator Durbin understands this matter well. His proactive and vigilant leadership is more important now than ever. We could not do our jobs at the CFTC - to police the derivatives sector - without the leadership of Senator Durbin. I am grateful that he will once again continue to ensure that we have the resources to guard against fraud, abuse and manipulation. This legislation will provide those needed resources and the American public will be the beneficiaries.

Finally, I want to thank the Majority Leader, Senator Reid, along with the Chairman of the Energy and Natural Resources Committee, Senator Bingaman, and Senator Dorgan for their support and leadership on behalf of American consumers.

Last Updated: June 10, 2010