Washington, DC – The Commodity Futures Trading Commission today announced the sponsorships of the agency’s advisory committees. Commissioner Kristin N. Johnson will sponsor the Market Risk Advisory Committee; Commissioner Christy Goldsmith Romero will sponsor the Technology Advisory Committee; Commissioner Summer Mersinger will sponsor the Energy and Environmental Markets Advisory Committee; Commissioner Caroline D. Pham will sponsor the Global Markets Advisory Committee; and Chairman Rostin Behnam will sponsor the Agriculture Advisory Committee.
The CFTC’s Advisory Committees were created to provide input and make recommendations to the Commission on a variety of regulatory and market issues that affect the integrity and competitiveness of US derivatives markets. The committees facilitate communication between the Commission and US derivatives markets, trading firms, market participants, and end users.
The Market Risk Advisory Committee (MRAC) advises the Commission on matters relating to evolving market structures and movement of risk across clearinghouses, exchanges, intermediaries, market makers, and end users. It examines systemic issues that threaten the stability of the derivatives markets and other financial markets, and makes recommendations on how to improve market structure and mitigate risk. Members include representatives of clearinghouses, exchanges, intermediaries, market makers, end-users, academia, and regulators.
Commissioner Johnson said, “I am honored to be the sponsor of the MRAC and pleased to continue the work of my predecessor, Chairman Rostin Behnam. Having spent my career in risk management oversight, I appreciate the MRAC’s significant and critical role in advising the Commission on risk management in our markets including the emerging decentralized market structures in digital asset or cryptocurrency markets that may not rely on intermediation as well as risk management. across traditional clearinghouses, exchanges, intermediaries, market makers, and end users. I look forward to thoughtful engagement with advisory committee members regarding the best approaches for preserving the established benefits of risk oversight in conventional markets, digital asset markets, and on other nascent frontiers. Consistent with our governing statute and core principles, the MRAC will address market risks that threaten the vibrancy, vitality, and resilience of our preeminent derivatives and other financial markets. ”
The Technology Advisory Committee (TAC) was created to advise the Commission on the impact and implications of technological innovations on financial services and the futures markets, and the appropriate legislative and regulatory response to increasing use of technology in the markets. TAC members include representatives of futures exchanges, self-regulatory organizations, financial intermediaries, market participants, and traders.
Commissioner Goldsmith Romero said, “We are witnessing a historic period of technological innovation, which weaves more tightly through the fabric of our financial markets every day. Digital assets, distributed ledger technology and market infrastructure, cybersecurity, automated trading, and innovation related to climate and ESG, are just some of the areas where the Commission can significantly benefit from the valuable insight of stakeholders on the Technology Advisory Committee. I am honored to sponsor a forum to discuss the impact, implications, and risks of these technological developments, and the appropriate regulatory response, so that the CFTC ensures our financial markets remain a beacon of integrity, resilience, and vibrancy. “
The Energy and Environmental Markets Advisory Committee (EEMAC) is a statutorily mandated advisory committee, which serves as a vehicle for discussion and communication on matters of concern to exchanges, firms, end users, and regulators regarding energy and environmental markets and their regulation by the Commission.
Commissioner Mersinger said, “Energy and environmental markets have always been an important component of the work we do here at the CFTC, and never more so than during the last few years. I am excited to jump right into hearing the views of stakeholders concerning the role of the Commission with respect to these markets through my sponsorship of the Energy and Environmental Markets Advisory Committee. “
The Global Markets Advisory Committee (GMAC) was created to advise the Commission on issues that affect the integrity and competitiveness of US markets and US firms engaged in global business, including the regulatory challenges of a global marketplace that reflects the increasing interconnectedness of markets and the multinational nature of business. The GMAC also makes recommendations regarding international standards for regulating futures, swaps, options, and derivatives markets, as well as intermediaries. Members include financial market infrastructures, swap data repositories, intermediaries including swap dealers, market participants, service providers, public interest groups, and regulators.
Commissioner Pham said, “We cannot ignore that today’s markets are global and so we need to find global solutions. It is critical that markets are well-functioning and that there are clear and simple rules with common standards to promote market integrity and resilience, facilitate compliance, and foster innovation and growth in both traditional and new products. I’m excited to sponsor A forum for US leadership and international engagement where we can all come together to take a pragmatic approach to current and emerging challenges. ”
The Agricultural Advisory Committee (AAC) was created to advise the Commission on issues involving trading of agricultural commodity futures and options and facilitate communications between the CFTC, the agricultural community, and agriculture-related organizations.
Chairman Behnam said, “I look forward to continuing the CFTC’s strong and long-standing partnership with America’s agriculture community. At a time of great uncertainty, CFTC markets become an increasingly important risk management tool for farmers and ranchers, and the AAC, under my sponsorship, will act as a channel to ensure the success and growth of the agricultural economy. “