Mike Levin: “The Senator from New Mexico raises an interesting and important question, on which I have conferred with the CFTC. In…”

“The Senator from New Mexico raises an interesting and important question, on which I have conferred with the CFTC. In addition to the savings clause in section 13203(c)(2) that preserves FERC's jurisdiction under its statutes as a threshold matter, I believe that FERC's jurisdiction over these transactions would, in any event, be preserved. It is my view that the kinds of cash transactions that you cite would not be captured within the amendment's ``significant price discovery contract'' test. The test is reserved for those transactions conducted ``in reliance'' on the exemption in paragraph 2(h)(3) of the Commodity Exchange Act. Because the CEA does not apply to cash transactions for purposes of regulation, these transactions cannot, by definition, be conducted ``in reliance'' on this exemption. As such, FERC's authority in this area is preserved on all accounts.”