Public Statements & Remarks

Opening Statement of Commissioner Christy Goldsmith Romero at Commission Meeting: Developing a Workable Game Plan to Keep Markets Functioning Well During Times of Stress

June 07, 2023

As the first LGBTQIA+ Commissioner, I am very proud to sit on this dais and bring much needed representation to the financial regulatory community. nbsp; Today, I proudly wear my pride pin at this open meeting.

In my confirmation hearing for this role, I said that my highest priority would be to ensure that markets are working well. [1] We must always remember that the impact of market disruptions and stress is felt the hardest by farmers, ranchers, and producers, who face rising inputs, as well as hardworking American families who may have to pay more to feed their family, drive their car, or to cool and heat their homes.  Commodity and derivatives markets have faced unexpected global challenges and disruptions over the last few years, with the pandemic, Russian war, climate disasters, and cybercrime.

As I recently said at the Global Markets Advisory Committee Meeting, “We have arrived at a time when we should expect the unexpected. nbsp; By expecting the unexpected, exchanges, clearinghouses, intermediaries, the Commission, and others can prepare a game plan for future market challenges—a game plan that holds the lessons of past disruptions, but also has the flexibility to adapt to new challenges.  There is great benefit to clear heads planning now….[C]omplex issues impacting global derivatives markets would benefit from forward thinking.  Working through them now with clear heads and the benefit of time can lead to a workable game plan that will keep markets functioning well during times of stress.”[2]

We meet today to consider matters that are part of a workable game plan to ensure that markets work well during times of stress.  This is important when it comes to clearinghouses, as they serve as a cornerstone to mitigating risk in U.S. markets.  Dodd Frank Act reforms increased central clearing of trades, putting clearinghouses in more of a public interest role.  The systemic nature of some clearinghouses underscores the need for vigilant oversight.

Today, we consider two rules for clearinghouses.  We are proposing that all clearinghouses have wind down plans.  No one expects to fail.  But the lessons from 2008 and 2023 are that a disorderly failure of a financial institution can cause chaos, particularly to Main Street.

I testified before the Senate in 2014 that I strongly supported the Dodd-Frank Act’s “dual approach: front line measures aimed at keeping the largest financial institutions safe and sound, and a last line defense aimed at letting a company fail without damaging the economy.” [3]  I support the proposed rule today because it does just that.

We are also considering a final rule on governance over decisions that can materially impact a clearinghouse’s risk profile.  In addition to the Market Risk Advisory Committee’s recommendations from 2021, which is prior to Russia’s war, there are several enhancements that I advanced in the proposed rule.  I advanced these after speaking to many stakeholders about the consultation process.  I am pleased to see them included in the final rule.

Additionally, for the capital comparability determinations for European swap dealers, we must ensure that we do not increase risk to U.S. markets.  Our capital requirements promote the resilience of swap dealers and protect the U.S. financial system.  Substituted compliance must leave U.S. markets at no greater risk than full compliance with our rules.

Finally, we will consider modernizing and strengthening requirements for the Commitment of Traders report, a report that is critical to market transparency and the Commission’s ability to promote market integrity through monitoring, surveillance, and enforcement.

I thank the staff for their hard work on these matters.  I also thank the MRAC members who worked on the recommendations, and all who submitted public comments, on the clearinghouse governance rule.  I find public comment to be very helpful, and I encourage it for the proposed matters today.

[1]  Statement of Christy Goldsmith Romero, Confirmation Hearing, U.S. Senate Committee on Agriculture, Nutrition, and Forestry (Mar. 2, 2022) Testimony_Goldsmith Romero.pdf (

[2]  CFTC Commissioner Christy Goldsmith Romero, Expect the Unexpected in Global Markets, (Feb. 13, 2023) Opening Statement of Commissioner Christy Goldsmith Romero Regarding Global Markets Advisory Committee Meeting | CFTC.

[3]  Written Testimony Submitted by The Honorable Christy L. Romero, Special Inspector General for the Troubled Asset Relief Program Before the U.S. Senate Banking, Housing and Urban Affairs Committee Subcommittee on Financial Institutions and Consumer Protection, download ( (July 16, 2014).