Friday, November 21, 2014

Commissioner Bowen Seeks Input on New Market Risk Advisory Committee

[This story previously appeared in Securities Regulation Daily.]

By Lene Powell, J.D.

CFTC Commissioner Sharon Bowen put out a call for comment on the composition and priorities of a new committee looking at market risk, as well as nominations for committee members.

The newly established Market Risk Advisory Committee (MRAC) will examine matters of public concern to clearinghouses, exchanges, intermediaries, market makers, end-users, and the Commission relating to systemic issues that might threaten the stability of the derivatives markets and other financial markets. The committee will help the Commission understand the impact of evolving market structure and movement of risk across various market components.

The Commission expects the committee to have approximately 20 to 25 members drawn from entities with interests in the derivatives markets and systemic risk. The committee will hold from two to four meetings per year. The MRAC is solely advisory, and members will serve at the pleasure of the Commission.

Commissioner Bowen invited the public to submit topics for consideration by the committee. Topics should be focused on matters relating to systemic risk concerning market clearinghouses, exchanges, intermediaries, market makers, end-users, and the Commission. The commissioner also called for nominations to the committee of individuals with a high level of expertise and experience in the derivatives and financial markets.

Comments and nominations are due by December 3, 2014.