Interactive Symposium on Internal Controls and Risk Management Practices

Introduction

The Commodity Futures Trading Commission sponsored a one-day interactive symposium on June 24, 1996, to focus on what users, brokers and dealers in financial instruments should know about risk management practices and internal controls and the role of regulators and self-regulators in assuring maintenance of adequate risk management practices.

The symposium brought together representatives from brokerage houses, law firms, self-regulatory organizations, accounting firms, corporations, and regulators from around the world to discuss various approaches to assuring adequate internal controls and risk management practices.

The video from the Interactive Symposium on Internal Controls and Risk Management Practices will be available on August 12, 1996. This video highlights the important points and topics which came out of the timely symposium. It is a must see for all those involved in the area of commodities regulation including law firms, auditors, brokers, FCMs, end-users, regulators and self-regulators. The set of tapes is divided into 4 separate volumes each lasting 45 minutes. The first tape addresses risk management and internal controls concerns from the perspective of an FCM/dealer and a counterparty, the second one addressess what users need from audit reports, the third tape addresses end-users' perspectives on risk management and internal controls and the final segment addressess what can and should regulatory and self-regulatory authorities be doing with respect to risk management strategies and internal controls. In order to recoup the costs associated with producing this video, the CFTC must charge $34 for this 4 volume set of VHS tapes. This charge includes postage. Please make your checks payable to the CFTC and mail them to the attention of Janis Kelly, Division of Trading and Markets. For more information on this limited offering, please contact Janis Kelly or John Lewis at jlewis@cftc.gov

The proceedings of the individual panels were edited from taped transcripts of the sessions.

A BIBLIOGRAPHY OF THE HANDOUTS

ACTING CHAIRMAN JOHN E. TULL JR.'S OPENING REMARKS

DIRECTOR OF THE DIVISION OF TRADING AND MARKETS ANDREA M. CORCORAN'S OPENING REMARKS

DIALOGUE -- RISK MANAGEMENT AND INTERNAL CONTROLS CONCERNS FROM THE PERSPECTIVE OF AN FCM/DEALER AND A COUNTERPARTY

Thomas A. Russo, Lehman Brothers- Chair

Kenneth M. Raisler, Sullivan and Cromwell

Laurence Mollner, Dean Witter Reynolds, Inc.

John P. Davidson, Morgan Stanley & Co, Inc

Gordon Linn, First Options of Chicago

Daniel T. Mudge, Bankers Trust Co.

Gary Alan DeWaal, FIMAT Futures U.S.A., Inc.

COUNTERPOINT: EVALUATING RISK MANAGEMENT AND INTERNAL CONTROL SYSTEMS -- WHAT DO USERS NEED FROM AUDIT REPORTS

Leslie Rahl, Capital Market Risk Advisors- Chair

Christine Cumming, Federal Reserve Bank of New York

Don Leslie, Canadian Investor Protection Fund

David M. Kozak, John W. Henry & Co., Inc.

Bill Pauly, ING Derivatives Clearing

Debra Perry, Moody's Investor Services

Carmine DiSibio, Ernst & Young, LLP

Nicky Tan, Price Waterhouse, Singapore

Sundaresh Menon, Rajah & Tann

END-USERS' PERSPECTIVES ON RISK MANAGEMENT AND INTERNAL CONTROLS: THE POINTS OF VIEW OF THE BOARD OF DIRECTORS AND MANAGEMENT

Joseph Grundfest, Stanford University- Chair

Todd Petzel, The Common Fund

Verne O. Sedlacek, Harvard Management, Inc.

Gordon Binns, Virginia Retirement System

John Herlihy, The World Bank

David Jones, Fidelity Management & Research Co.

Allison Gregory, Long Term Capital Management

Kathryn M. Trkla, Chicago Board of Trade

Robert G. Easton, Commodities Corporation Ltd.

FREE FOR ALL: WHAT CAN AND SHOULD REGULATORY AND SELF-REGULATORY AUTHORITIES BE DOING WITH RESPECT TO RISK MANAGEMENT STRATEGIES AND INTERNAL CONTROLS

Kathryn J. Meyer, Chicago Mercantile Exchange- Chair

Michael A. Macchiaroli, Securities and Exchange Commission

William P. Miller, General Motors Investment Management Corp.

Daniel A. Driscoll, National Futures Association

Ronald S. Oppenheimer, New York Mercantile Exchange

Dennis A. Dutterer, Chicago Board of Trade Clearing Corp.