October 16, 2000

Senate Agriculture Committee Chairman Richard Lugar (R-IN) is willing to offer a "simple one line" reauthorization of the Commodity Futures Trade Commission, since it appears highly unlikely more broad legislation can be approved in this Congress. "The relevant parties were continuing to meet, and progress was being made. Unfortunately, negotiations have appeared to stall," he said.

"Although I remain hopeful that the parties can overcome their differences and I will continue to work in the time remaining to find a resolution, I am prepared to offer legislation that would contain a simple one line reauthorization of the CFTC," Lugar said.

Failure to pass the Commodity Futures Modernization Act of 2000 will cause "grave repercussions throughout the financial markets," Lugar continued. The $80 trillion over-the-counter (OTC) swaps industry will continue to "live under the shadow of uncertainty caused by the Commodity Exchange Act (CEA). The U.S. futures exchanges will remain shackled by an antiquated regulatory structure. The ban on single stock futures will likely cause this market to develop overseas."

Waiting for a new Congress in January "is not a good option," he said. With a national election that will determine committee leadership and control of the White House and Congress, "this legislation might not return in 2001. Next year the Senate Agriculture Committee will probably commit its resources to other priorities within its jurisdiction. Now is the time to act. I encourage all parties involved in this legislative effort to come together to celebrate success this year."