July 25, 2012

Public Meeting of the Technology Advisory Committee to be Held Tomorrow

Full Committee to Focus on Possible Technological Solutions to Improve Direct Access to Customer Segregated Accounts

Washington, DC — The Commodity Futures Trading Commission (CFTC) announces that on Thursday, July 26, 2012, the CFTC’s Technology Advisory Committee (the “TAC” or “Committee”) will hold a public meeting at the Commission’s headquarters in Washington, DC from 10:00 a.m. to 4:00 p.m. This meeting will focus on identifying and exploring technological issues and possible solutions relating to the ability of the CFTC, self-regulatory organizations and futures commission merchant (FCM) customers to verify the location and status of funds held in customer segregated accounts.

Panelists and TAC members will explore a range of technological solutions directed at enhancing the protection of segregated customer funds through means such as the provision of direct, automated access to depository institutions and the unique legal and technological issues that accompany such access.

The meeting will be held in two sessions. The morning session will consist of eight panelists representing the Commission, self-regulatory organizations (SROs), futures commission merchants (FCMs) and technology providers. Gary Barnett, Director of the Division of Swap Dealer and Intermediary Oversight, will lead the presentations by providing an overview of draft rules recently circulated among the CFTC Commissioners. Chris Hehmeyer, TAC member and Chairman of the Board of the National Futures Association (NFA) will present solutions proposed by the NFA to protect customer funds. Bryan Durkin, Chief Operating Officer of CME Group and TAC member, will discuss CME’s proposed customer protection reforms and changes in the responsibilities of the SROs. Two FCM representatives, Gerry Corcoran, President and Chief Executive Officer of RJ O’Brien, and Michael Dawley, a Managing Director from Goldman Sachs and Chairman of the Board of Directors for the Futures Industry Association will share their thoughts on the appropriate FCM reforms. The morning panel will conclude with presentations from technology providers Chris Schellhorn, President of Capital Confirmation, Alun Green, General Manager of Capital Markets for SunGard, and Steve Hurst, CEO of Merchants Data Repository.

In the afternoon, the full Committee will respond to and discuss the proposals and solutions presented during the morning session.

Commissioner Scott D. O’Malia, the chairman of the TAC, stated, “The failure of two futures commission merchants within the last ten months has shaken public confidence in the futures markets. This betrayal of the public trust demands an immediate and comprehensive overhaul of our customer protection system. Earlier this year, I advocated for an array of FCM solutions to improve customer protections.¹ Tomorrow, I intend to focus the TAC members on coming up with a technological solution that is 100% industry-designed and maintained and overseen by the CFTC to prevent fraud and misappropriation of customer funds.”

The TAC meeting is open to the public with seating on a first-come, first-served. Audio of the meeting will be available via a listen-only conference call. Additionally, a video recording of the meeting will be published through a link on the CFTC’s website.

All written submissions provided to the CFTC in any form will also be published on the CFTC.

¹ /PressRoom/SpeechesTestimony/opaomalia-11

Last Updated: May 15, 2013