Release Number 7142-15

March 25, 2015

CFTC Announces Agenda for the Upcoming Public Meeting of the Market Risk Advisory Committee

Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC or Commission) announced today the full agenda for the upcoming CFTC Market Risk Advisory Committee (MRAC) public meeting. The meeting will be held on Thursday, April 2, 2015 at the Commission’s headquarters in Washington, D.C. from 10:00 a.m. to 1:30 p.m. For more information regarding the meeting, view CFTC Press Release 7135-15.

The MRAC meeting will focus on issues related to: Current risk management techniques employed by Derivatives Clearing Organizations (DCOs) to ensure that the appropriate measures are in place to address the potential default of a significant clearing member; and the evolving structure of the derivatives markets, particularly with respect to Swap Execution Facilities.

Tentative Agenda (times are approximate):

 

10:00 a.m.

Welcome and Opening Remarks

10:15 a.m.

Panel 1: Default Management at CCPs

  • How are Derivatives Clearing Organizations (DCOs) preparing for the potential default of a significant clearing member(s) (e.g., default firedrills)?
  • What is the most likely real-life default scenario of a significant clearing member(s)? How likely is it that the default of a significant clearing member would be isolated to that clearing member? Alternatively, how likely is it that multiple clearing members, and clearing members with multiple CCP memberships, would be affected? What would be happening on the “road to default”?
  • Based on what is likely to happen in an actual default of a significant clearing member, how should the DCOs’ plans be adjusted, if at all?
  • Are there areas where DCOs can coordinate and/or standardize their practices in order to better address a real-life default scenario of a significant clearing member(s)?
  • What role, if any, should the Commission play in addressing these issues?

12:15 p.m.

Break

12:30 p.m.

Panel 2: Market’s Response to the Introduction of SEFs

  • Has the introduction of Swap Execution Facilities (SEFs), mandated as part of the Dodd-Frank Act, substantially changed the swaps market structure? If so, how; if not, why not?
  • Is there sufficient liquidity on SEFs? What are the factors affecting SEF liquidity?
  • Does the practice of name give-up affect the amount of liquidity on SEFs?
  • What role, if any, should the Commission play in addressing these issues?
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1:20 p.m.

Closing Remarks

Detailed Agenda

 

 

Last Updated: April 1, 2015