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U.S. COMMODITY FUTURES TRADING COMMISSION 

RENEWAL CHARTER OF THE MARKET RISK ADVISORY COMMITTEE

(1) Committee’s Official Designation. 

The advisory committee’s official designation is the Market Risk Advisory Committee 

(“MRAC”). 

(2) Authority. 

The MRAC is a discretionary advisory committee established by the authority of the U.S. 

Commodity Futures Trading Commission (“Commission”) in accordance with the 

Federal Advisory Committee Act (“FACA”), as amended, 5 U.S.C. App. 2. 

(3) Objectives and Scope of Activities. 

In support of the Commission’s mission of promoting the integrity, resilience, and 

vibrancy of the U.S. derivatives markets through sound regulation, as well as the 

monitoring and management of systemic risk, the MRAC’s objectives and scope of 

activities shall be to conduct public meetings, advise, and submit reports and 

recommendations to the Commission on: (1) systemic issues that impact the stability of 

the derivatives markets and other related financial markets; and (2) the impact and 

implications of the evolving market structure of the derivatives markets and other related 

financial markets. 

(4) Description of Duties. 

In accordance with 5 U.S.C. App. 2 § 9(b) of the FACA the duties of the MRAC shall be 

solely advisory. The MRAC may, by simple majority vote, call for reports and/or 

recommendations by the MRAC or MRAC subcommittee(s), adopt reports and/or 

recommendations, and transmit reports and/or recommendations to the Commission. 

MRAC reports and/or recommendations shall be developed in consultation with all 

members of the MRAC and any transmission to the Commission shall include dissenting 

or minority views, if any. MRAC subcommittee reports and/or recommendations shall be 

deliberated on by the MRAC before transmission to the Commission. No determination 

of fact or policy shall be made by the MRAC on behalf of the Commission. 

Determinations of actions to be taken and policy to be expressed with respect to the 

reports and/or recommendations of the MRAC shall be made solely by the Commission. 

(5) Agency or Official to Whom the Committee Reports. 

The MRAC shall submit its reports and recommendations to the Commission. The 

MRAC will also have a “Sponsor,” who may be the Chairman of the Commission, a 

Commissioner, or a designee of the Commission, and who will be responsible for 

ensuring that the advice and recommendations of the MRAC are provided to the 

Commission. 

(6) Support. 

The Commission shall provide necessary support services for the MRAC. 
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(7) Estimated Annual Operating Costs and Staff Years. 

The estimated annual operating costs for supporting the MRAC are approximately 

$148,000. This cost estimate includes costs associated with meeting expenses as well as 

the cost of .42 of one full-time Commission employee needed to support the MRAC on a 

continuing basis. MRAC members will not be compensated by the Commission for their 

services and will not be reimbursed or receive per diem from the Commission for travelrelated expenses to attend MRAC meetings. 

(8) Designated Federal Officer. 

The Commission shall appoint a full-time or permanent part-time Commission employee 

to serve as the Designated Federal Officer (“DFO”) of the MRAC and any established 

MRAC subcommittees. The Commission may appoint additional full-time or permanent 

part-time Commission employees to serve as alternate DFOs (“ADFOs”) for the MRAC 

and/or any established subcommittees. The DFO or ADFO shall prepare and approve all 

meeting agendas; approve or call all MRAC or subcommittee meetings; attend all MRAC 

and subcommittee meetings; adjourn any meeting when the DFO or ADFO determines 

adjournment to be in the public interest; chair meetings when directed to do so by the 

Sponsor; and assist in the preparation and certification of meeting minutes. 

(9) Estimated Number and Frequency of Meetings. 

The MRAC shall meet at such intervals as are necessary to carry out its functions. It is 

estimated that meetings of the MRAC will occur two or more times per year; meetings of 

MRAC subcommittees may occur more frequently. 

(10) Duration. 

The MRAC will continue until two years from the date of renewal, unless the 

Commission directs that it terminate on an earlier date. 

(11) Termination.

The MRAC shall terminate two years from the date of renewal, unless the charter is 

renewed prior to its expiration in accordance with Section 14(a)(2)(A) of the FACA. 

(12) Membership and Designation. 

Members shall be appointed and may be removed by vote of the Commission. Members 

may be appointed or removed at any time. The Sponsor shall designate a member of the 

MRAC or MRAC subcommittee to serve as the Chair absent the objection of a majority 

of the Commission. The Sponsor may also designate another committee or subcommittee 

member to serve as a co-Chair absent the objection of the majority of the Commission. 

The MRAC shall consist of no more than 37 total voting and nonvoting members. 

Each voting member who is not a regular government employee shall serve on the 

MRAC either as a special government employee (“SGE”) or as a representative of an 

organization or identifiable group of persons with interests affected by the work of the 

MRAC. SGE members provide advice to the Commission on the basis of their expertise 

and best, independent judgment in a manner free from conflicts of interest. The 
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Commission shall not appoint any federally registered lobbyist to serve as SGEs on the 

MRAC. 

 

Representative members serve on the MRAC primarily to convey to the Commission and 

to the MRAC the views and interests of the organizations and/or groups that they 

represent. The Commission may appoint individuals to serve as representative members. 

In addition, the Commission may authorize an organization that is affected by the work 

of the MRAC, or whose members are affected by the work of the MRAC, to serve as a 

member and designate an individual (with final approval by the Sponsor) to represent the 

organization and, where relevant, the organization's members. The member organization 

may also designate alternates with Sponsor approval. 

In addition to voting representative members, the Commission may appoint nonvoting 

representative members from Regional Reserve Banks of the Federal Reserve System to 

convey to the Commission and to the MRAC the views and interests of their respective 

Regional Reserve Banks. 

Members will represent a wide range of perspectives and interests and may include the 

viewpoint categories listed below. The members will be selected to represent a balance 

of viewpoints that are necessary to effectively address the issues to be considered by the 

MRAC. Though the viewpoint categories and the precise number of members in any 

category may vary over time, the Commission anticipates that the MRAC will have 

approximately 18-37 members who may represent the following viewpoint categories: 

 

(i) end-users; 

(ii) exchanges; 

(iii) swap execution facilities; 

(iv) swap data repositories; 

(v) clearinghouses; 

(vi) asset managers;

(vii) intermediaries; 

(viii) market makers; 

(ix) service providers; 

(x) academia; 

(xi) public interest groups; and 

(xii) regulators. 

(13) Subcommittees. 

The Commission may establish and dissolve MRAC subcommittees. The number of 

members on any MRAC subcommittee will not exceed the number of members serving 

on the MRAC. Current MRAC members may, with the Sponsor’s approval, serve on any 

MRAC subcommittee without Commission appointment to a subcommittee. Other 

subcommittee members shall be appointed in the same manner as MRAC members. Any 

subcommittees shall report to the MRAC and may not provide reports and/or 

recommendations directly to the Commission or to any Commission officer or employee. 

An MRAC subcommittee may, by simple majority vote, adopt its reports and/or 
recommendations, and transmit reports and/or recommendations to the MRAC. MRAC 

subcommittee reports and/or recommendations shall be developed in consultation with all 

members of the MRAC subcommittee and any transmission to the MRAC shall include 

dissenting or minority views, if any. MRAC subcommittees shall have no authority to 

make decisions on behalf of the MRAC. No determination of fact or policy shall be 

made by any MRAC subcommittee on behalf of the Commission. 

(14) Recordkeeping. 

Records of the MRAC and any subcommittees shall be maintained in accordance with the 

General Records Schedule 6.2 and other Commission records guidance. Records of open 

MRAC meetings will be made available to the public on the Commission's website. 

(15) Filing Date. 

This charter has been filed with the Senate Committee on Agriculture, Nutrition and 

Forestry, the House of Representatives Committee on Agriculture, the Library of 

Congress, and the Secretariat of the U.S. General Services Administration on April 20, 

2022. 

Dated: April 20, 2022 

Washington, D.C. 

~h~-

Christopher J. Kirkpatrick 

Secretary of the Commission 

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