The CFTC chairman said the agency is working toward publishing the Commitment of Traders (COT) report twice weekly by the end of the year. The chairman said agricultural market participants had requested improvements to the report. The chairman said more frequent publication would provide market participants with more timely data on positions and trading activity.
The chairman said 24/7 trading had been a recurring concern in discussions with agricultural stakeholders this year. The chairman said the CFTC consulted prospective market users when exchanges sought to introduce 24/7 contracts. The chairman argued that technological capability alone should not justify moving agricultural commodity markets to continuous trading. The chairman pledged that the Commission would not apply a uniform approach to 24/7 trading. The chairman said agricultural commodities may be unsuitable for the continuous trading used in perpetual contracts.
The chairman argued that innovation should add risk-management options for producers without displacing effective existing tools. The chairman said the CFTC is tailoring regulations to differences among livestock, row crops and specialty crops, and among agricultural regions. The chairman said agricultural regulation requires a different approach from regulation of crypto or precious metals. The chairman argued that markets cannot be considered effective unless markets serve farmers, ranchers and producers. The chairman noted that the statute gives agricultural commodities a distinct category because those products often require different regulatory treatment.
The chairman said the CFTC continues monitoring markets for possible manipulation while modernizing and automating public data. The chairman said the CFTC is collaborating with the U.S. Department of Agriculture (USDA) on appropriate information sharing and transparent markets that support price discovery. The chairman said the CFTC is also working with prudential regulators to simplify capital requirements and improve access to clearing. The chairman said an updated memorandum of understanding between the CFTC and USDA would improve coordination and information sharing to serve farmers, ranchers and agribusinesses. The chairman said USDA Secretary Brooke Rollins and Rollins' team recognize the importance of effective risk-management markets for agriculture.
The chairman said the CFTC is working with the Environmental Protection Agency (EPA) on Renewable Identification Numbers (RINs), carbon credits and derivatives linked to those products. The chairman said collaboration with EPA Administrator Lee Zeldin is increasing to support appropriate oversight of RINs and renewable fuels markets. The chairman said that cooperation aims to deter manipulation and fraud while maintaining safe, competitive markets for every participant. The chairman said the CFTC seeks to support the EPA and agricultural producers through fair markets.
The chairman said the Agricultural Advisory Committee had been revived after years of inactivity to obtain direct input from producers and agribusinesses. The chairman said the committee held the first meeting in July. The chairman said discussions covered Basel III, clearing access, possible gaps between CFTC and USDA risk-management products, 24/7 trading and perpetual futures. The chairman said those subjects would receive further discussion during AgCon. The chairman said Emma Johnston had been hired as the CFTC's first Senior Agriculture Advisor. The chairman said Johnston leads staff work for the advisory committee and helped organize AgCon. The chairman said Johnston regularly meets producers and agribusinesses and advises agency leadership about agricultural market developments.
The chairman said meetings this year had included farmers, ranchers, agribusinesses and energy producers in Iowa, Texas, Nebraska, South Carolina and Florida. The chairman said AgCon was intended to let CFTC staff hear agricultural stakeholders' concerns and assess how to improve end users' access to hedging tools. The chairman said senior White House and USDA officials had joined CFTC officials at the conference to hear directly from participants. The chairman said the CFTC had worked with House and Senate members, the White House and Rollins on policies addressing agricultural producers' needs. The chairman argued that cooperation is necessary because regulation cannot resolve every problem facing the sector.
The chairman said the agency had stopped devoting resources to ESG objectives and climate-policy initiatives outside the CFTC's core responsibilities. The chairman said the agency is instead prioritizing market integrity, competition, innovation and oversight of markets assigned by Congress.
CFTC Chairman Outlines Plans for Agricultural Market Reforms
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Summary
CFTC chairman announced plans to release the weekly market report twice weekly by year-end, offering faster data for agricultural traders. The agency is also reviewing 24/7 trading for ag commodities, stressing the need for custom rules and stakeholder input. CFTC works with USDA and EPA to boost transparency and prevent market manipulation. The Agricultural Advisory Committee has been reactivated, and the first Senior Agriculture Advisor has been hired. Traders tracking altcoins to watch should note the potential ripple effects on related markets.
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