Opening Statement, Inaugural Meeting of the Data Standardization Subcommittee

Commissioner Scott O’Malia, TAC Chair

August 5, 2011

Good Afternoon. I would like to welcome everyone to the inaugural meeting of the Data Standardization Subcommittee of the CFTC’s Technology Advisory Committee.

Thank you for your commitment to serving on this important subcommittee. I often say that technology is going to be the cornerstone of the new market structures mandated by the Dodd-Frank Act. The data, execution, and reporting mandates of Dodd-Frank place us all in the center of the complex intersection of data, finance and the law, creating an unparalleled opportunity for a public/private partnership. I have asked the individuals in this room to come together with a common goal of reaching a consensus as to how we can standardize the language we use to communicate within the new regulatory landscape. I am confident that we will come up with both innovative and achievable solutions.

It is impossible to minimize with words the technological burden associated with transitioning to the greater federal oversight mandated by Dodd-Frank. The Section 719(b) study, which was unanimously approved by the Commission this past April, contains many recommendations but few mandated solutions. The window of opportunity is therefore wide open.

I hope that you will, in considering your recommendations to the Technology Advisory Committee, keep in mind the general regulatory goals of promoting market stability and efficiency, increasing transparency, removing barriers to entry, and avoiding unduly burdensome transition costs or requirements. I hope that you trust the very purpose of this enterprise: that we are very much listening, that we understand there are substantial hurdles toward data standardization, and we want your advice on how to help lessen or remove these obstacles.

In closing, I’d like to thank CFTC Chief Economist Andrei Kirilenko for chairing this subcommittee and Nancy Doyle and JonMarc Buffa for their leadership. Future public meetings of the Data Standardization Subcommittee will be held on September 30,, 2011 and November 4, 2011; however individual working groups within the Subcommittee are free to and will meet at their discretion. Recommendations to the Technology Advisory Committee will be posted on the CFTC’s website at www.cftc.gov.

Last Updated: August 5, 2011