CFTC’s Market Risk Advisory Committee
1155 21st Street, N.W.
Washington, DC 20581
June 27, 2016
Agenda
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10:00 a.m. |
Welcome and Opening Remarks |
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10:10 a.m. |
Panel 1: Enhancing CCP Coordination in Default Management – Discussion of Draft Recommendations of the CCP Risk Management Subcommittee Facilitator: Key Speakers: Dennis McLaughlin, LCH.Clearnet Kimberly Taylor, CME Group Main Questions: 1. How can CCPs improve their communication with each other prior to, and in the midst of, a default that involves a shared clearing member? How can CCPs enhance their communication with the Commission prior to, and during, a default? 2. How can CCPs better coordinate the scheduling of traders who help with the default management process so that trading desks are not over-tasked during a time of crisis? 3. Can CCPs engage in regular joint default drills in order to better understand how their mutual markets interact during the default of shared clearing members? 4. How can CCPs better coordinate their auction processes so that market participants are prepared for auctions at various CCPs? 5. Are there other ways that CCPs can coordinate more effectively in order to mitigate the effect of a default of one or more significant clearing members? 6. Are there any operational, legal, logistical, or other barriers to CCP coordination? And if so, can they be overcome? 7. What role, if any, should the Commission play in encouraging greater coordination among CCPs in the default management process? |
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11:25 a.m. |
Break |
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11:40 a.m. |
Panel 2: FDIC Staff Presentation on G-SIB Resolution Facilitator: Key Speakers: Main Questions: 1. What is the FDIC's approach to bank resolution? 2. What is the process to appoint the FDIC as receiver of a G-SIB? 3. What authorities are involved in the process? 4. What is the current status of the G-SIB Title I Resolution Plan process with respect to access to financial market utilities (FMUs)? 5. What international efforts are underway to address G-SIB resolution? |
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12:10 p.m. |
Panel 3: CFTC & FDIC Staff Presentation on CCP Resolution Facilitator: Key Speakers: Main Questions: 1. At the international level, what are the agreed upon objectives of a CCP resolution and what powers are viewed by international regulatory authorities as necessary to create effective regimes for the orderly resolution of CCPs? 2. What progress has been made at the international level regarding the development of potential strategies for CCP resolution? a) What work is currently being done at the international level on CCP resolution? b) What are the planned deliverables regarding CCP resolution in the next year? 3. What is the U.S. statutory framework for DCO resolution? a) What is the statutory framework under the Bankruptcy Code applicable to a DCO? b) Are DCOs eligible for resolution under the Orderly Liquidation Authority in Title II of the Dodd-Frank Act? 4. Are DCOs subject to Title I plan submission requirements or are they required to do any resolvability assessments or other advanced resolution planning? 5. How are the FDIC and CFTC working together to develop resolution strategies for DCOs? 6. What unique issues arise in the context of a DCO resolution under Title II? a) What is the distinction between recovery and resolution in the context of a DCO? b) What are the considerations for timing of entry into resolution for a DCO? c) How does DCO resolution planning differ from G-SIB resolution planning? d) What other issues arise in the context of resolution planning for DCOs (e.g., operational continuity, regulatory coordination, and information sharing)? |
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1:10 p.m. |
Closing Remarks |
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1:30 p.m. |
Adjournment |