CFTC-PR-9021-24 (12-16-24) (CFTC-PR-2412)

CFTC Commissioner Kristin N. Johnson Announces Reports and Recommendations Advanced by MRAC in 2024

Excerpt:  December 16, 2024 – WASHINGTON, D.C. — The Market Risk Advisory Committee held a public meeting Dec. 10 during which the MRAC adopted three sets of recommendations for the U.S. Commodity Futures Trading Commission’s consideration. The reports and accompanying recommendations, detailed below, address (i) U.S. Treasury markets with a focus on effective risk management practices for the cash-futures basis trade, (ii) modernization of regulation governing cyber resilience and critical third-party service providers for central counterparties, and (iii) the potential benefits and limitations of formally adopting obligations to employ legal entity identifiers for beneficial account holders of certain intermediaries.

According to Commissioner Johnson, “the MRAC’s success advancing three sets of recommendations adopted on Dec. 10 as well as the recommendations on derivatives clearing organization recovery and resilience and the report on concentration risk related to the declining number of futures merchant commissions adopted in April demonstrate the exceptional work of the members of the MRAC.” The MRAC examines risks across our financial markets, including systemic issues that could threaten the stability of derivatives markets, and the risks associated with evolving market structures and the implementation of novel technologies across clearinghouses, exchanges, intermediaries, market makers and end-users.

Source:  https://www.cftc.gov/PressRoom/PressReleases/9021-24

Categories:  Agency Reports

CFTC-PR-9021-24 (12-16-24)