From Bob Anderson...

Chief Counsel to CFTC Commissioner Bowen joined our meeting

At the March CCRO meeting, Petal Walker, Chief Counsel to CFTC Commissioner Bowen, was our guest.


Ms. Walker provided members at that meeting with some useful context regarding the wants and needs the CFTC has for this committee.

Ms. Walker first commented on the purpose of the MRAC, calling it a space created by the CFTC to hear from industry. She commented that the term 'market risk' here is targeted at systemic risks, that potentially threaten an entire market.

Can the MRAC specifiy the parameters that define such a systemic risk?

She mentioned that through the MRAC, the CFTC is also looking to hear from its members about what the CFTC agenda should be. The CFTC can react to potentially unfavorable market risk situations in several ways, ranging from statutory rules to simple encouragement aimed at favorable market participant actions.

How should the CFTC react to the agenda advanced by the MRAC? 

With this new information about what is happening in and around markets, what should the CFTC be doing? The MRAC will also be looking at current market structures, and the realities of markets.

Could the CFTC have inadvertently created risks through some of its regulations?

In any case, the MRAC will be submitting its recommendations in written form. Commissioner Bowen wants to do everything possible to ensure that this committee is a useful exercise, and in no way just 'grandstanding'.

Ms. Walker pointed out that the CCROs involvement as a committee member is very important. The CCRO will be representing the 'end-user' segment of commodity markets. This segment needs to be heard from. The CCRO represents the ideal group of professionals from that segment's companies to deliver insightful input for the MRAC.

The first agenda for the MRAC meeting coming-up on April 2nd is now available on the MRAC working group web page for CCRO members to review.
Bob will be scheduling a conference call to discuss the proposed topics and questions for this meeting. Members will be receiving an e-mail shortly.

Avery Potter