Release Number 5629-09

Release: 5629-09
For Release: March 9, 2009

CFTC Seeks Nominations to the Subcommittee on Convergence

Subcommittee Will Look Into Poor Cash-Futures Convergence in Agricultural Commodity Markets and Advise on Actions to Remedy Lack of Convergence

Washington, DC – The Commodity Futures Trading Commission (CFTC) posted a Federal Register Notice today that it is seeking nominations to the Subcommittee on Convergence in Agricultural Commodity Markets, a new Subcommittee of the CFTC’s Agricultural Advisory Committee. The Subcommittee on Convergence will identify the causes of poor cash-futures convergence in select agricultural commodity markets and advise on actions to remedy the situation.

CFTC Acting Chairman Michael V. Dunn commented:

“Particularly in our agricultural markets, we have noted continuing problems with lack of convergence and weak basis. The Subcommittee on Convergence will bring together all relevant information on the potential causes of these problems and help investigate possible solutions that will restore the markets’ effectiveness as a risk management tool for the agricultural sector.”

The Subcommittee on Convergence will conduct at least three sessions to examine the causes, potential remedies, and suggested actions to remedy lack of convergence. The sessions are planned for the first half of 2009 and will be open to the public. The Subcommittee will present a report with its findings and recommendations to the Agricultural Advisory Committee, which will consider the report and make recommendations to the CFTC as to what further actions warrant consideration.

Nominations are sought for highly qualified representatives from government agencies, industry, exchanges, and groups representing interests or organizations involved with or affected by the convergence issues. The final deadline for nominations is 14 days from the publication date of the Federal Register Notice.

Media Contacts
Robert Holifield

R. David Gary

Last Updated: March 9, 2009