I 

112TH CONGRESS 

1ST SESSION H. R. 1840 

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 

A BILL 

To improve consideration by the Commodity Futures Trading 

Commission of the costs and benefits of its regulations 

and orders. 

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: 


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1 ‘‘(1) IN GENERAL.—Before promulgating a reg2 ulation under this Act or issuing an order (except as 

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

4 through the Office of the Chief Economist, shall as5 sess the costs and benefits, both qualitative and 

6 quantitative, of the intended regulation and propose 

7 or adopt a regulation only on a reasoned determina8 tion that the benefits of the intended regulation jus9 tify the costs of the intended regulation (recognizing 

10 that some benefits and costs are difficult to quan11 tify). It must measure, and seek to improve, the ac12 tual results of regulatory requirements. 

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

14 determination of the costs and the benefits, the 

15 Commission shall evaluate— 

16 ‘‘(A) considerations of protection of market 

17 participants and the public; 

18 ‘‘(B) considerations of the efficiency, com19 petitiveness, and financial integrity of futures 

20 and swaps markets; 

21 ‘‘(C) considerations of the impact on mar22 ket liquidity in the futures and swaps markets; 

23 ‘‘(D) considerations of price discovery; 

24 ‘‘(E) considerations of sound risk manage25 ment practices; 


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1 ‘‘(F) available alternatives to direct regula2 tion; 

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

4 posed by various activities within the scope of 

5 its jurisdiction; 

6 ‘‘(H) whether, consistent with obtaining 

7 regulatory objectives, the regulation is tailored 

8 to impose the least burden on society, including 

9 market participants, individuals, businesses of 

10 differing sizes, and other entities (including 

11 small communities and governmental entities), 

12 taking into account, to the extent practicable, 

13 the cumulative costs of regulations; 

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

15 incompatible, or duplicative of other Federal 

16 regulations; 

17 ‘‘(J) whether, in choosing among alter18 native regulatory approaches, those approaches 

19 maximize net benefits (including potential eco20 nomic, environmental, and other benefits, dis21 tributive impacts, and equity); and 

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

Æ 


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