Transcript

CFTC Commissioner Behnam Announces Upcoming Market Risk Advisory Committee Public Meeting

Commodity Futures Trading Commission (CFTC or Commission) Commissioner Rostin Behnam today announced the members of the CFTC’s Market Risk Advisory Committee (MRAC or Committee).  The newly-appointed MRAC will hold its first public meeting on July 12, 2018 at the CFTC's Washington, DC, headquarters from 10:00 am to 4:00 p.m.  Commissioner Behnam is the sponsor of this advisory committee.

“I am pleased to convene the first meeting of the MRAC under its renewed charter and to welcome its new and returning members,” said Commissioner Behnam.  The 36 members represent a broad spectrum of market participants, stakeholders, academics, and public interest groups.  Each has demonstrated expertise in their fields and a commitment to public service.  With broad objectives aimed at addressing systemic and other risks impacting the evolving derivatives and related markets, the MRAC is poised to engage in the most critical issues of the day.  I am confident that with a wealth of knowledge and diversity of views and experiences, the MRAC will find consensus on recommendations to the Commission that are rooted in supporting safe, transparent and efficient derivatives markets.” See full list of MRAC members under Related Links.

The Committee, first chartered in 2014, is designed to support the Commission’s efforts to detect and mitigate risks within the market for industry participants, consumers, and the broader financial community.  The MRAC’s mandate is to conduct public meetings, advise, and submit reports and recommendations to the Commission on:

• Matters of public concern to asset managers, clearinghouses, exchanges, intermediaries, market makers, service providers, swap execution facilities, swap data repositories, end-users and the Commission regarding systemic issues that impact the stability of the derivatives markets and other related financial markets; and
• The impact and implications of the evolving market structure of the derivatives markets and other related financial markets.

In addition to introducing the new MRAC members and discussing the Committee’s priorities and agenda, the July 12^th meeting will focus on the current initiatives to reform the London Interbank Offered Rate (LIBOR), including the development and adoption of alternative interest rate benchmarks.  Members of the Alternative Reference Rates Committee (ARRC) and other key market participants will provide an overview of the ARRC’s efforts in this area, the improvements to LIBOR, and the development of the Secured Overnight Financing Rate (SOFR) and SOFR derivatives.  MRAC members and guests will also discuss the importance of interest rate benchmarks to the broader economy, including end-users and the general public, and the effect of LIBOR reform on the derivatives markets.

Commissioner Behnam also said, “I am pleased that the MRAC can provide a dedicated venue for discussing how the derivatives markets can best address and manage the risks associated with LIBOR or alternative benchmarks.  The advent of alternative reference rates has intensified expectations; but, given the magnitude of LIBOR’s pervasiveness throughout our nation’s economy, touching everything from home mortgages to student loans, the choice of any alternative entails significant work in re-configuring products, processes, and strategies.  Through this upcoming MRAC meeting and on-going efforts of the ARRC and others, regulators and market participants are working hard to ensure that benchmarks are resilient, transparent, and not subject to fraud and manipulation.”

The meeting is open to the public with seating on a first-come, first-served basis. Members of the public may also listen to the meeting via conference call using a domestic toll-free telephone or international toll or toll-free number to connect to a live, listen-only audio feed. Persons requiring special accommodations to attend the meeting because of a disability should notify Alicia Lewis at (202) 418–5862.

Viewing/Listening Instructions: Watch the live webcast at www.cftc.gov.  To listen to the live audio feed, call the toll or toll-free numbers under Related Links. Call-in participants should be prepared to provide their first name, last name and affiliation.

Conference call information:

Members of the public who wish to submit written statements in connection with the meeting should submit them by July 19, 2018. Written statements should be identified by “Market Risk Advisory Committee,” and submitted by mail or hand delivery to: Christopher Kirkpatrick, Secretary of the Commission, Commodity Futures Trading Commission, Three Lafayette Center, 1155 21st Street NW, Washington, DC 20581, or via the CFTC’s website.  Follow the instructions for submitting comments through the Comments Online process on the website.  Any statements submitted in connection with the committee meeting will be made available to the public, including publication on cftc.gov.