Statement of Chairman Timothy Massad on Release of Reports on CCP Resilience, Recovery and Resolution

August 16, 2016

I welcome the documents published today by the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO), as well as by the Financial Stability Board (FSB), on issues related to clearinghouse resiliency and recovery and resolution planning.

CPMI-IOSCO’s Resilience and Recovery consultative report examines the Principles for Financial Market Infrastructures (PFMIs), and seeks to provide further granularity and guidance to improve resilience and recovery planning. Its findings come in part from responses to two extensive surveys submitted by more than 30 central counterparties (CCPs) across the globe. The report was drafted by CPMI-IOSCO’s Policy Standing Group (PSG), which is co-chaired by the CFTC’s Bob Wasserman, alongside Daniela Russo of the European Central Bank (ECB). I’d like to express my appreciation to Bob and his hardworking team of CFTC staff, as well as the staff of the ECB, and of the other authorities contributing to the work of the PSG, all of whom dedicated significant time and energy to this report.

The consultative document complements a second report released today that sets out the findings of a separate CPMI-IOSCO working group, the Implementation Monitoring Standing Group (IMSG), which works to assess the implementation of the PFMIs. The IMSG report looks at ten representative CCPs to determine the adequacy of the outcomes of their implementation of the PFMIs. Also today, the Financial Stability Board (FSB) released a Discussion Note on CCP resolution that will be published for public comment. CFTC staff participated in the work that led to both of these reports, and I applaud the release of these important items as well.

As I have noted before, clearinghouse resiliency, as well as recovery and resolution planning, are high priorities for the CFTC. In addition to helping lead or participating in these international workstreams, we have been very busy on these issues at home. For example, our examination and risk surveillance programs focus on clearinghouse resiliency on an ongoing basis. We are working with our major clearinghouses to review their recovery plans and rule changes, and are engaged in discussions with them and other market participants on how significant problems would be handled. Last month, we released some detailed guidance for those clearinghouses on the development of their plans and rules. And we have been actively engaged in assisting staff of the Federal Deposit Insurance Corporation (FDIC) on resolution planning.

I again thank the hardworking CFTC staff and look forward to our continued engagement in this important work.

Last Updated: August 16, 2016