CFTC Market Risk Advisory Committee
Early in 2015, the CCRO Executive Director was nominated and accepted position as a member of the CFTCs Market Risk Advisory Committee (MRAC). In that position, Bob represents the CCRO member community of 'end-user' companies. Bob will be holding discussions with members to learn about the concerns that members have as topics emerge as subject matter for the MRAC. With Bob's help, members may work together to develop insightful concensus around the key issues from the perspective of the end user, such that Bob may participate constructively in the MRAC meetings by helping the CFTC appreciate the end-user risk viewpoint on these issues.
At the March CCRO meeting
, Petal Walker, Chief Counsel to Commissioner Bowen,
was our guest. Ms. Walker provided members at that meeting with some useful context regarding the CFTC and its wants and needs from this committee. Click here for more on the comments
that Ms. Walker provided us at the meeting...
About the MRAC
The Committee, which was first chartered in 2014, is designed to support the Commission’s efforts to detect and mitigate risks within the market to industry participants, consumers, and the broader financial community. This year, the Committee intends to study both long-standing and nascent risks to the market, as well as challenges posed by the evolving structure of the swaps and futures markets.
MRAC’s mandate is to:
Commissioner Bowen is the sponsor of this advisory committee. In the press release, the commissioner said:
Conduct public meetings and submit reports and recommendations to the Commission on matters of public concern to clearinghouses, exchanges, intermediaries, market makers, end-users and the Commission regarding systemic issues that threaten the stability of the derivatives markets and other financial markets; and
Assist the Commission in identifying and understanding the impact and implications of an evolving market structure and movement of risk across clearinghouses, intermediaries, market makers and end-users.
I am very pleased with the breadth and depth of talent that will be present on the Committee. Our members bring valuable expertise and a diversity of opinions and perspectives about the swaps and futures industry. We received a great deal of interest regarding serving on MRAC and many thoughtful comments from members of the public on a broad range of topics upon which MRAC should focus.
Now the MRAC must begin work on determining and analyzing the risks to our markets and consumers, in order to provide consultation on how best to address them. I am confident that the Commission will benefit from the recommendations of this Committee.
Next CCRO Discussion:
Agenda: MRAC meeting #1