IB 

Union Calendar No. 337 

112TH CONGRESS 

2D SESSION H. R. 1840 

[Report No. 112–482] 

To improve consideration by the Commodity Futures Trading Commission 

of the costs and benefits of its regulations and orders. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 11, 2011 

Mr. CONAWAY (for himself, Mr. QUIGLEY, Mr. MCHENRY, Mr. BOSWELL, and 

Mr. NEUGEBAUER) introduced the following bill; which was referred to 

the Committee on Agriculture 

MAY 16, 2012 

Additional sponsors: Mr. OWENS, Mr. GARRETT, Mr. STIVERS, Mr. 

KINGSTON, Mr. RIBBLE, and Mr. GIBSON

MAY 16, 2012 

Committed to the Committee of the Whole House on the State of the Union 

and ordered to be printed 


srobinson on DSK4SPTVN1PROD with BILLS
2 

•HR 1840 RH

A BILL 

To improve consideration by the Commodity Futures Trading 

Commission of the costs and benefits of its regulations 

and orders. 


srobinson on DSK4SPTVN1PROD with BILLS
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•HR 1840 RH

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. CONSIDERATION BY THE COMMODITY FU4 TURES TRADING COMMISSION OF THE COSTS 

5 AND BENEFITS OF ITS REGULATIONS AND 

6 ORDERS. 

7 Section 15(a) of the Commodity Exchange Act (7 

8 U.S.C. 19(a)) is amended by striking paragraphs (1) and 

9 (2) and inserting the following: 

10 ‘‘(1) IN GENERAL.—Before promulgating a reg11 ulation under this Act or issuing an order (except as 

12 provided in paragraph (3)), the Commission, 

13 through the Office of the Chief Economist, shall as14 sess the costs and benefits, both qualitative and 

15 quantitative, of the intended regulation and propose 

16 or adopt a regulation only on a reasoned determina17 tion that the benefits of the intended regulation jus18 tify the costs of the intended regulation (recognizing 

19 that some benefits and costs are difficult to quan20 tify). It must measure, and seek to improve, the ac21 tual results of regulatory requirements. 

22 ‘‘(2) CONSIDERATIONS.—In making a reasoned 

23 determination of the costs and the benefits, the 

24 Commission shall evaluate— 


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1 ‘‘(A) considerations of protection of market 

2 participants and the public; 

3 ‘‘(B) considerations of the efficiency, com4 petitiveness, and financial integrity of futures 

5 and swaps markets; 

6 ‘‘(C) considerations of the impact on mar7 ket liquidity in the futures and swaps markets; 

8 ‘‘(D) considerations of price discovery; 

9 ‘‘(E) considerations of sound risk manage10 ment practices; 

11 ‘‘(F) available alternatives to direct regula12 tion; 

13 ‘‘(G) the degree and nature of the risks 

14 posed by various activities within the scope of 

15 its jurisdiction; 

16 ‘‘(H) whether, consistent with obtaining 

17 regulatory objectives, the regulation is tailored 

18 to impose the least burden on society, including 

19 market participants, individuals, businesses of 

20 differing sizes, and other entities (including 

21 small communities and governmental entities), 

22 taking into account, to the extent practicable, 

23 the cumulative costs of regulations; 


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•HR 1840 RH

1 ‘‘(I) whether the regulation is inconsistent, 

2 incompatible, or duplicative of other Federal 

3 regulations; 

4 ‘‘(J) whether, in choosing among alter5 native regulatory approaches, those approaches 

6 maximize net benefits (including potential eco7 nomic, environmental, and other benefits, dis8 tributive impacts, and equity); and 

9 ‘‘(K) other public interest considerations.’’. 


srobinson on DSK4SPTVN1PROD with BILLS
Union Calendar No. 337 

112TH CONGRESS 

2D SESSION H. R. 1840 

[Report No. 112–482] 

A BILL 

To improve consideration by the Commodity Fufits of its regulations and orders. tures Trading Commission of the costs and beneMAY 16, 2012 

Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 


srobinson on DSK4SPTVN1PROD with BILLS