Thank you for another tremendously successful Market Risk Advisory Committee (MRAC) meeting.  The contributions of the MRAC are directly the result of the commitment and dedication of 1) the MRAC Members, Subcommittee Members, and the leadership of both the Committee and Subcommittees; 2) the indefatigable support of the Commission’s leadership with crucial and invaluable support from Clark Hutchinson, Director of the Division of Clearing and Risk; Amanda Olear, Director of the Market Participants Division; and Vince McGonangle, Director of the Division of Market Oversight; and 3) the Designated Federal Officer and Alternate Designated Federal Officers who support the MRAC and its Subcommittees.  I’d like to say a bit more about this final group in a moment.

The MRAC’s charter and track record establish the Committee’s mission. Almost a decade ago, CFTC Commissioner Sharon Bowen remarked at the inaugural MRAC meeting that “[t]he purpose of MRAC is to provide the Commission with market intelligence and recommendations from industry and other stakeholders, about market risk and market structure issues.”[1]  As Chair Behnam passed the MRAC sponsorship baton to me, I embraced the MRAC’s mission and will endeavor to ensure that the Committee and Subcommittees effectively contribute to oversight of market risk and assessment of critical market structure issues.  At the risk of adding one more acronym to the discussion, I would say that market risk and market structure concerns are quintessentially at the heart of the MRAC’s mission; they are the MRAC’s purpose; in other words, these issues are strands that form part of our DNA. Undaunted by the complexities of market conditions, the rough terrain of divergent and diverse stakeholder, academic and public interest perspectives or other headwinds, we will advance the MRAC’s agenda which reflects a continued commitment to achieving these long-established market risk and market structure goals.

During our meeting two of the original MRAC subcommittees established at the creation of the MRAC under Commissioner Bowen’s sponsorship—Central Counterparty Risk and Governance (CCP Risk and Governance) and Market Structure—formally reported on workstreams that were in development since I assumed sponsorship of the MRAC and throughout planning sessions since the first MRAC meeting under my sponsorship in the fall of 2022.  The CCP Risk and Governance Subcommittee affirmed its meetings this year and the progress on three workstream working groups—CCP Recovery and Resolution; Margin and Collateral Guidelines; and Technology and Operations.  Each of these workstream working groups is advancing discussion on current market risk issues. The Market Structure Subcommittee affirmed its meetings this year and progress on four workstreams—block implementation rules, FCM concentration and capacity, U.S. Treasury market reform, and post-trade risk reduction.  I have expressed to these Subcommittees that I fully expect that we will uphold the near decades’ long tradition of offering important and valuable contributions to the Commission on these issues.

We also celebrated a final report from the Interest Rate Benchmark Reform (IRBR) Subcommittee and heard presentations that will shape the agenda of two more recently established Subcommittees—the Future of Finance and Climate-Related Market Risks Subcommittees.  As I shared earlier, we are deeply indebted to the service of the IRBR Subcommittee for its service and example of the significant benefits that a public-private partnership with a unified agenda may engender.

Finally, but perhaps most importantly, I referenced earlier the support of the DFO and ADFOs for the MRAC.  I want to thank Bruce Fekrat, my former Chief Counsel.  Bruce served as DFO for the MRAC; he helped to launch the MRAC under my sponsorship.  Almost all remaining credit should be attributed to Marilee Dahlman, ADFO for MRAC.  Today will also be the final meeting at which Marilee Dahlman, Lillian Cardona and Matt Rowland serve as ADFOs.  Marilee continues to serve as Special Counsel in DMO. Bruce will join Matt in the Office of the General Counsel for the Commission and Lillian serves as Assistant Chief Counsel in DMO. Signing up for a second tour of duty, however, Lillian will support Commissioner Mersinger as an ADFO of an EEMAC subcommittee.

Lillian and Matt supported me and each of the other four Commissioners confirmed in March 2022 throughout the nomination and confirmation process.  Each also agreed to serve in my earliest days as a Commissioner.  For that they deserve a medal.  We are grateful for your service and for the service of each of the individuals who continue to serve as ADFOs supporting the MRAC (Parisa Nouri (CCP Risk & Governance) and Dan O’Connell (Market Structure) of the Division of Clearing and Risk).

[1] Commissioner Sharon Bowen, Opening Remarks, Market Risk Advisory Committee Meeting April 2, 2015 Statement of Commissioner Sharon Bowen before the Market Risk Advisory Committee | CFTC.