Chairman Rostin Behnam delivered the opening remarks at the CFTC and the Center for Risk Management Education and Research (CRMER) at Kansas State University AgCon 2024 on April 11, 2024. Behnam expressed his pride in leading the return of the conference, emphasizing the importance of engaging with agricultural stakeholders to find solutions for America's farmers and ranchers.
Highlighting the role of futures markets during challenging times, Behnam acknowledged the impact of external factors on commodity markets, such as supply chain breakdowns and geopolitical risks. Despite these challenges, he commended the resilience of futures markets in reflecting supply and demand fundamentals for risk management and price discovery.
In addressing the current economic landscape, Behnam noted the persistence of higher food and energy prices and assured that the CFTC is utilizing all available tools to ensure transparent and fair commodity markets. He stressed the importance of implementing strategies that will support and sustain agricultural markets for years to come, emphasizing the need for resilience, accessibility, and cost-effectiveness in derivatives markets.
Discussing regulatory concerns, Behnam highlighted the evolving relationships between futures commission merchants and customers, pointing out the potential impacts of new regulations on the clearing ecosystem. He shared data illustrating the reduction in registered FCMs over the years and emphasized the importance of maintaining a diverse participant base to avoid concentration risks.
Behnam underscored the significance of capital in financial regulation and advocated for a balanced approach to implementing regulatory proposals to preserve incentives for clearing and effective risk management. He emphasized the need for continued dialogue and collaboration to address uncertainties in the agricultural economy and ensure the derivatives markets serve their intended purpose.
In conclusion, Behnam expressed gratitude to all those involved in organizing AgCon 2024 and emphasized the collaborative efforts between the CFTC and Kansas State University. He recognized the contributions of individuals and organizations in making the conference possible and highlighted the importance of sharing knowledge and experiences to support the agricultural industry's prosperity.
