CFTC and SEC create advisory committee on emerging regulatory issues

CFTC and SEC create advisory committee on emerging regulatory issues

Commodity Futures Trading Commission chairman Gary Gensler and Securities and Exchange Commission chairman Mary Schapiro have formed a joint committee that will address emerging regulatory issues. 

The establishment of the Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues was one of the 20 recommendations included in the agencies’ harmonisation report issued last year.

The joint committee will develop recommendations on emerging and ongoing issues relating to both agencies. 

The first item on the committee’s agenda is conducting a review of last Thursday’s market events and making recommendations related to market structure issues that may have contributed to the volatility, as well as disparate trading conventions and rules across various markets.

To orient the committee’s work, the staff of the CFTC and SEC will provide to the committee on Monday their joint preliminary findings regarding last Thursday’s market events.

“It is important that we hear from this prominent panel of market practitioners, academics and former regulators about emerging risks in our markets,” says Gensler (pictured). “It is critical that the CFTC and SEC hear from the panel together because our markets are so intertwined. I am particularly interested in the committee’s first focus: advising on courses of action in response to the lessons learned from the market events of May 6.”

“As last week’s events remind us, our markets are increasingly interrelated and interdependent so we need to appreciate how events in one arena can potentially impact investors and markets elsewhere,” adds Schapiro. “The joint committee will serve an essential role in addressing that challenge.”

The committee’s charter includes: identifying of emerging regulatory risks; assessing and quantifying of the impact of such risks and their implications for investors and market participants; and furthering the CFTC’s and SEC’s efforts on regulatory harmonisation.

Gensler and Schapiro will serve as co-chairs of the joint committee.

Further reading



Upcoming events

Upcoming training

Mon, 12/05/2014 (All day) - Dubai
Tue, 13/05/2014 (All day) - Dubai