Comment Text:
Dear Members of the Agricultural Advisory Committee,
I want to thank each and every one of you for reviewing my complaint. I understand that the business of this subcommittee is taxing and I truly appreciate the time you are taking. My case asks a simple question: Whose job is it to oversee the commodities markets? From what I have witnessed, it is the job of the National Futures Association (NFA), an independent, non-profit organization with the task of self-regulating the commodities and futures markets. I have also witnessed what I have been told is “negligent mis-representation”. This was the term used by a Professional colleague I approached in concern to my dealing with my broker and the NFA. I believe my broker to have broken rules and I paid the price for it. Yet, when I filed a complaint to the NFA, I have been kept in the dark in relation to the discussion between my broker and the NFA. I want to know if the NFA is accountable to the Commodities Futures Trading Commission (CFTC). I have asked multiple times for an answer and have been told to be patient. I believe I have been patient, as this has been an 8 year process. In the CFTC’s mission statement, its goal is to foster open, transparent, competitive and financially sound markets and to avoid systemic risks in the market. With this statement I ask you to review the NFA’s role in the market and how to keep it accountable to investors. I consider this to be important because as the general public gets more involved in these markets, they should know who enforces the rules and ensures the market works efficiently. As Iowa senior Senator, Chuck Grassley, said to the New York Times, “People need to have confidence in our commodity trading system in order for it to work for farmers and investors the way it’s intended.” As we have seen, with the collapse of MF Global and Peregrine Financial Group, the commodity trading system has been in turbulent times. Investor confidence is not as strong as it was and we need to review how we make the market function efficiently. Because markets function best when everyone has confidence in the market. One of the first steps to restore that confidence is to educate the public who holds brokers and market players accountable. Thank you again for reviewing my case.
Best regards, Doug Bell
