December 22, 2014

CFTC’s Global Markets Advisory Subcommittee on Foreign Exchange Markets Submits Report

Washington, DC — The U.S. Commodity Futures Trading Commission’s (CFTC) Subcommittee on Foreign Exchange Markets (FEM) submitted a report to the Global Markets Advisory Committee (GMAC) regarding a prospective clearing mandate for foreign exchange (FX) non-deliverable forwards (NDFs). FEM is a subcommittee of GMAC.

“I want to thank the members of the FEM Subcommittee for their contributions to this report that answers important questions that arose at the October GMAC meeting,” said Commissioner Mark Wetjen, sponsor of the GMAC. “It raises a number of essential issues about a potential clearing mandate for NDFs, particularly as it relates to the timing and cross-border harmonization of implementing such a mandate. I know this report will be useful and instructive to the GMAC members, Commissioners and CFTC staff.”

The FEM subcommittee was established in October after a GMAC advisory meeting that partly focused on issues related to clearing NDFs. The FEM Subcommittee was charged with completing a report for the GMAC that would address g the following questions:

• Is an NDF clearing mandate appropriate?
  
  
• What is the best way for the CFTC to implement a clearing mandate?
  
  
• Are there likely to be any execution issues in light of the Made Available to Trade (MAT) rulings?
  

Market participants and members of the public may submit comments and questions regarding the report to Ted Serafini at [email protected].

A complete list of members of the FEM Subcommittee can be found on the Commission website.

Last Updated: December 22, 2014