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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 
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A BILL 
To improve consideration by the Commodity Futures Trading 
Commission of the costs and benefits of its regulations 
and orders. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. CONSIDERATION BY THE COMMODITY FU-
TURES TRADING COMMISSION OF THE COSTS 
AND BENEFITS OF ITS REGULATIONS AND 
ORDERS. 
Section 15(a) of the Commodity Exchange Act (7 
U.S.C. 19(a)) is amended by striking paragraphs (1) and 
(2) and inserting the following: 
‘‘(1) IN GENERAL.—Before promulgating a reg-
ulation under this Act or issuing an order (except as 
provided in paragraph (3)), the Commission, 
through the Office of the Chief Economist, shall as-
sess the costs and benefits, both qualitative and 
quantitative, of the intended regulation and propose 
or adopt a regulation only on a reasoned determina-
tion that the benefits of the intended regulation jus-
tify the costs of the intended regulation (recognizing 
that some benefits and costs are difficult to quan-
tify). It must measure, and seek to improve, the ac-
tual results of regulatory requirements. 
‘‘(2) CONSIDERATIONS.—In making a reasoned 
determination of the costs and the benefits, the 
Commission shall evaluate— 
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‘‘(A) considerations of protection of market 
participants and the public; 
‘‘(B) considerations of the efficiency, com-
petitiveness, and financial integrity of futures 
and swaps markets; 
‘‘(C) considerations of the impact on mar-
ket liquidity in the futures and swaps markets; 
‘‘(D) considerations of price discovery; 
‘‘(E) considerations of sound risk manage-
ment practices; 
‘‘(F) available alternatives to direct regula-
tion; 
‘‘(G) the degree and nature of the risks 
posed by various activities within the scope of 
its jurisdiction; 
‘‘(H) whether, consistent with obtaining 
regulatory objectives, the regulation is tailored 
to impose the least burden on society, including 
market participants, individuals, businesses of 
differing sizes, and other entities (including 
small communities and governmental entities), 
taking into account, to the extent practicable, 
the cumulative costs of regulations; 
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‘‘(I) whether the regulation is inconsistent, 
incompatible, or duplicative of other Federal 
regulations; 
‘‘(J) whether, in choosing among alter-
native regulatory approaches, those approaches 
maximize net benefits (including potential eco-
nomic, environmental, and other benefits, dis-
tributive impacts, and equity); and 
‘‘(K) other public interest considerations.’’. 
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Union Calendar No. 337 
112TH CONGRESS 
2D SESSION 
H. R. 1840 
[Report No. 112–482] 
A BILL 
To improve consideration by the Commodity Fu-
tures Trading Commission of the costs and bene-
fits of its regulations and orders. 
MAY 16, 2012 
Committed to the Committee of the Whole House on the 
State of the Union and ordered to be printed 
VerDate Mar 15 2010 
22:21 May 16, 2012
Jkt 019200
PO 00000
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srobinson on DSK4SPTVN1PROD with BILLS