Global Markets Advisory Committee

CFTC’s Global Markets Advisory Committee
1155 21st Street, N.W.
Washington, DC 20581

May 14, 2015


2:00 pm to 2:15 p.m.

Open Meeting

  • GMAC Designated Federal Officer

  • Opening Remarks
  • Commissioner Mark Wetjen, GMAC Sponsor
  • Chairman Tim Massad
  • Commissioner Sharon Bowen
  • Commissioner Chris Giancarlo

2:15 p.m. to 4:15 p.m.

Panel I: Assessing Clearinghouse Capital Contributions and Stress Testing


The first panel will focus on assessing clearinghouse safeguards. Specifically this panel will focus on clearinghouse stress testing as well as the incentives related to clearinghouse capital contributions.


  • Robert Wasserman, Chief Counsel, Division of Clearing and Risk, U.S. Commodity Futures Trading Commission
  • Jeffrey C. Marquardt, Deputy Director, Bank Operations and Payment Systems, Board of Governors of the Federal Reserve System
  • Fabrizio Planta, Team Leader Post-Trading, European Securities and Markets Authority
  • David Bailey, Director, Financial Market Infrastructure, Bank of England
  • Mr. Shunsuke Shirakawa, Deputy Commissioner for International Affairs, Financial Services Agency, Government of Japan

  • A. Clearinghouse stress testing.

  • Key Issues:

  • Should there be common standards for clearinghouse stress tests? What are the challenges to bringing standards to clearinghouse stress tests?
  • What information, if any, about stress-test methodologies and results should be disclosed to the clearinghouse members or the public? What are the potential risks of such disclosure to the clearinghouse and the marketplace?
  • If global regulations regarding stress testing are not harmonized, what could be the impact on financial stability concerns and/or competition?
  • Are there other financial resources that are part of the default waterfall that regulators should consider allowing CCPs to use, such as insurance?

  • B. Clearinghouse capital contributions to the waterfall and global harmonization.

  • Key Issues

  • Should regulators require clearinghouses to contribute their own capital (i.e., “skin in the game”) to the default waterfall?
  • Should regulators harmonize rules addressing appropriate clearinghouse capital contributions to the default waterfall? How would this be done, and would it require standardizing other aspects of CCP risk mitigation, such as margin methodologies, the components of the default waterfall generally, or recovery plans?

4:15 4:30 p.m.


4:30 p.m. to 5:30 p.m.

    Panel II: Margin for Uncleared Swaps


The second panel will focus on the CFTC’s proposal establishing margin requirements for uncleared swaps. Specifically, this panel will focus on (1) the three proposed approaches to the cross-border application of the margin rule and (2) the application of these rules to certain inter-affiliate trades.


  • Carlene Kim, Deputy General Counsel, U.S. Commodity Futures Trading Commission
  • Paul Schlichting, Assistant General Counsel, U.S. Commodity Futures Trading Commission
  • Sean Campbell, Deputy Associate Director, Division of Research and Statistics, Board of Governors of the Federal Reserve System

  • Key Issues — Cross-border application

  • The Commission issued an advanced notice of proposed rulemaking (ANPR) related to the appropriate cross-border application of its proposed margin rulemaking for un-cleared swaps. The ANPR proposed the following possible choices to applying its rule regarding trades involving non-U.S. persons:

  • The approach to cross-border application of the margin requirements taken by the Prudential Regulators’ proposal;
  • A transaction-level approach that is consistent with the Commission’s cross-border guidance; or
  • An entity-level approach in which the Commission would treat the margin requirements as an entity-level requirement.
  • What are the relative benefits and challenges to each of these approaches?