EVENT: Advisory Committee Meetings Dec 4, 2018

CFTC’s Market Risk Advisory Committee to Meet December 4 to Discuss Clearinghouse and Vendor Risk Management

 

The Commodity Futures Trading Commission’s (CFTC or Commission) Market Risk Advisory Committee (MRAC) will hold a public meeting on December 4, 2018 at CFTC's Washington, DC headquarters. CFTC Commissioner Rostin Behnam is the sponsor of MRAC.

 

At this meeting, the MRAC will focus on clearinghouse risk and vendor risk management.  MRAC members, CFTC staff, and guests will discuss current issues impacting clearing in panels focusing on (1) clearinghouse governance structures and risk management; (2) management of non-default losses in recovery and resolution; and (3) recent reports, discussion papers and proposed rules involving global standard setting bodies and prudential regulators.

“As market infrastructure continues to evolve, the issues examined within the MRAC will continue to evolve with it,” said Commissioner Behnam.  “One of the major changes since the financial crisis and Wall Street Reform has been the growth of central clearing, which has played a significant role in reducing systemic risk throughout the global financial ecosystem; however, given this growth, market participants and regulators must continually have fresh discussions about current risk management and governance policies of central counterparties.”

Additionally, the MRAC will begin a critically important conversation about effective risk management of third-party service provider and vendor relationships, including due diligence review of new vendors and ongoing oversight of the provider and their services.

“As more market participants utilize third-party vendors for business, regulatory, and operations services, the CFTC must make certain that its registrants are exercising appropriate due diligence to ensure market transparency and integrity.  The MRAC’s discussion will be the first of many conversations focusing on current Commission requirements regarding vendor risk management,” said Commissioner Behnam.

A formal agenda for this meeting is forthcoming.

The meeting is open to the public with seating on a first-come, first-served basis. Members of the public may also listen to the meeting via conference call using a domestic toll-free telephone or international toll or toll-free number to connect to a live, listen-only audio feed. Persons requiring special accommodations to attend the meeting because of a disability should notify Alicia Lewis at (202) 418–5862.

 

What:

Market Risk Advisory Committee Meeting

Location:

CFTC Headquarters Lobby-level Conference Room
1155 21st Street, NW, Washington, DC 20581

Date:

Tuesday, December 4, 2018

Time:

9:30 a.m. to 4:00 p.m.

Viewing/Listening Instructions: Watch the live webcast at www.cftc.gov.  To listen to the live audio feed, call the toll or toll-free numbers under Related Links. Call-in participants should be prepared to provide their first name, last name and affiliation.

Conference call information:

Domestic Toll Free:

1-866-844-9416

International Toll Numbers:

International Numbers

Conference Passcode:

2951743

Members of the public who wish to submit written statements in connection with the meeting should submit them by December 11, 2018. Written statements should be identified by “Market Risk Advisory Committee,” and submitted by mail or hand delivery to: Christopher Kirkpatrick, Secretary of the Commission, Commodity Futures Trading Commission, Three Lafayette Center, 1155 21st Street NW, Washington, DC 20581, or via the CFTC’s website: https://comments.cftc.gov.  Follow the instructions for submitting comments through the Comments Online process on the website.  Any statements submitted in connection with the committee meeting will be made available to the public, including publication on www.cftc.gov. 

View Webcast
CFTC Press Release 7846-18
CFTC Press Release 7849-18
83 FR 58263
Agenda

Opening Statements:

Statement of Commissioner Rostin Behnam
Statement of Commissioner Brian Quintenz

Statement of Commissioner Dan M. Berkovitz

Presentations:

Panel 4: Oversight of Third-Party Service Providers and Vendor Risk Management

Third Party Risk Management by Lazaro Barreiro, Director for Governance and Operational Risk Policy, Office of the Comptroller of the Currency

Ideas and Observations regarding FinTech/Third-Party Risk Management by B. Salman Banaei, Executive Director, Global Head of Clearance and Settlement, IHS Markit
 

Additional Documents:

Facilitator and Speaker Biographies

Report from the Interest Rate Benchmark Reform Subcommittee by Thomas Wipf, Subcommittee Chairman and Vice Chairman of Institutional Securities at Morgan Stanley

Interest Rate Benchmark Reform Subcommittee Membership List