Public Statements & Remarks

Opening Statement of Commissioner Kristin N. Johnson

Open Meeting July 26, 2023 of the Commodity Futures Trading Commission

July 26, 2023

Good morning.  Thank you, Chairman, Commissioners, Commission Staff, and everyone joining us in person and virtually.  Today, we will consider a final rule on Reporting and Information Requirements for Derivatives Clearing Organizations (DCOs), a proposed rule on Swap Confirmation Requirements for Swap Execution Facilities (SEFs), a proposed rule on Amendments to Provisions Common to Registered Entities, and a proposed rule on Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants.

I would like to thank the Division of Clearing and Risk, Division of Market Oversight, Market Participants Division, and Office of the Chief Economist for their efforts to prepare and finalize the proposed and final rules that the Commission will consider today.  I also want to thank Adrien Anderson and Matt Rowland in my office for their assistance in preparing for today’s meeting.

A year ago, almost to the day, this Commission held its first open meeting with the current Commission composition here at the CFTC’s Washington DC office, our agency’s headquarters.  A little over 90 days after a majority of us on this dais were sworn in to serve, we rolled up our sleeves and got to work. It seems fitting that we would mark the one-year anniversary of that meeting here today.

In a number of speeches and public remarks over the course of the last year, I have made three observations regarding the work that we do here at the Commission to advance protection for investors and market integrity.  First, our deep, liquid markets have demonstrated tremendous resilience in a persistently challenging macroeconomic environment.

Second, innovative financial products and market structures merit careful study and evaluation.  The onset of crypto-winter last summer triggered liquidity crises for a number of entities operating in the crypto-ecosystem.  Significant lessons must be drawn from the risk management and corporate governance failures witnessed. These lessons must influence our understanding of and regulatory oversight with respect to evolving market structures.

Finally, focusing explicitly on the final rule and proposed rules that we will consider today, important work remains.  The Commission’s work today continues decades—long-efforts—as is described in the preamble of the Dodd-Frank Act (adopted thirteen years ago last week)—to help mitigate systemic financial risk, promote financial stability and transparency, and to “foster greater efficiencies” across markets, including derivatives markets.

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I look forward to hearing from the Commission staff and my fellow Commissioners regarding these rulemakings.