CFTC Commissioner Kristin N. Johnson has revealed the agenda for the upcoming Market Risk Advisory Committee (MRAC) public meeting scheduled for April 9 in Washington, D.C. The meeting aims to consider recommendations designed to enhance market resilience and improve central counterparty wind-down procedures. Commissioner Johnson emphasized that these recommendations align with critical reforms implemented post the financial crisis to enhance market integrity and stability.
During the meeting, the MRAC will delve into a formal report on the state of intermediated clearing markets, which highlights a significant decline in the number of Futures Commission Merchants (FCMs) over the past two decades alongside a surge in customer holdings. Additionally, discussions will focus on the United States treasury cash-futures basis trade and associated risk management considerations.
Furthermore, the Future of Finance Subcommittee's Artificial Intelligence (AI) and Risk Management in Financial Markets Workstream will introduce a work plan outlining suggestions for integrating AI in the markets overseen by the CFTC. Commissioner Johnson underscored that the MRAC's mission is to address systemic risk concerns and propose pragmatic solutions to bolster derivatives market resilience and integrity.
The public can access the live feed of the meeting through phone participation and view meeting materials on CFTC.gov. Public comments related to the meeting can be submitted by April 16, 2024, following the provided instructions. The MRAC, one of five active Advisory Committees overseen by the CFTC, advises the Commission on evolving market structures and risk movement across various market entities to enhance market structure and mitigate risk.
The MRAC meeting serves as a platform for addressing critical issues affecting derivatives and financial markets, offering valuable insights and recommendations to safeguard market stability and integrity.
