The House Agriculture Subcommittee on General Farm Commodities and Risk Management last week held a hearing on three pieces of legislation related to swaps, a type of financial derivative, and on the Dodd-Frank Wall Street Reform and Consumer Protection Act.

The legislation is designed to lessen the unintentional outcomes of provisions of Title VII of the Dodd-Frank Act. The three pieces of legislation include:

H.R. 3283, the “Swap Jurisdiction Certainty Act,” would supply an unambiguous definition of “U.S. person” and “non-U.S. person” and restrict the application of Dodd-Frank to activities that happen in the United States.

H.R. 1838 would amend Section 716 of Dodd-Frank to guarantee that the condition for banks to “push out” specific swap activities to split affiliates does not increase risk to the system or increase costs of risk management tools for agriculture producers.

H.R. 4235, the “Swap Data Repository & Clearinghouse Indemnification Correction Act of 2012,” removes the indemnification provisions from sections 728 and 763 of Dodd-Frank and ensures that domestic and foreign regulators can communicate swaps data to enhance transparency in the market and check for systemic risk.

To read the testimony, click here.

Source: National Pork Producers Council