Legislative Activity

Lawmakers to Focus on Export-Import Bank Reauthorization

This week, the Senate Banking and House Financial Services Committees will hold hearings to discuss the Export-Import Bank – the agency that finances the export of American goods and services. The hearings will include several of the same witnesses, including the Honorable Fred P. Hochberg, President and Chairman of the Export-Import Bank. With the Export-Import Bank’s charter set to expire on June 30, lawmakers will soon be faced with determining whether to reauthorize its charter or force the bank stop issuing new credits and begin to wind down operations. House Financial Services Committee Chairman Jeb Hensarling (R-TX) has been one of the agency’s staunchest opponents and has encouraged fellow Republicans to let its charter expire. However, as a result of negotiations over recently passed trade legislation, Senate Majority Leader Mitch McConnell (R-KY) has agreed to allow a vote on reauthorization. Speaker of the House John Boehner (R-OH) has also committed to holding a vote on reauthorization if the Senate approves a bill for the House to consider.

This Week’s Hearings:

  • Tuesday, June 2: The House Financial Services Subcommittee on Housing and Insurance will hold a hearing titled “The National Flood Insurance Program: Oversight of Superstorm Sandy Claims.”
  • Tuesday, June 2: The Senate Banking Committee will hold a hearing titled “Perspectives on the Export-Import Bank of the United States.”
  • Wednesday, June 3: The House Financial Services Committee will hold a hearing titled “Examining the Export-Import Bank’s Reauthorization Request and the Government’s Role in Export Financing.”
  • Thursday, June 4: The Senate Banking Committee will hold a hearing titled “Oversight of the Export-Import Bank of the United States.”

Regulatory Activity

CFTC to Hold Market Risk Advisory Committee Meeting, Chairman Massad Discusses Priorities

On Tuesday, June 2, the Commodity Futures Trading Commission’s (CFTC) Market Risk Advisory Committee (sponsored by Commissioner Sharon Bowen) will hold a public meeting to discuss issues related to: (1) the appropriate industry response to current and potential cybersecurity threats; and (2) the concentration of Futures Commission Merchants (FCM), and its effect on, and other factors currently affecting market liquidity.

Last week, CFTC Chairman Tim Massad noted that the agency has begun work on a study to determine whether to require more swap dealers to register with the government – a study agreed to as part of a 2012 rule requiring firms that deal more than $8 billion in swaps in one year to register with the National Futures Association for oversight. Under the existing rule, the threshold amount would fall from $8 billion to $3 billion once the CFTC has completed the study and determined whether further action is needed. According to Chairman Massad, the CFTC hopes to complete the process “well in advance” of December 2017. Additionally, Chairman Massad noted that the CFTC is “taking a closer look” at how to design a process that would allow the agency to rely on exchanges to grant “timely” exemptions from the Position Limits Rule, while at the same time ensuring that such waivers meet the agency’s “regulatory goals.”

SEC to Hold Meeting of Advisory Committee on Small and Emerging Companies

On Wednesday, June 3, the Securities and Exchange Commission’s (SEC) Advisory Committee on Small and Emerging Companies will hold a meeting to discuss rules and regulations affecting small and emerging companies under federal securities laws.