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 ensuring the integrity of the derivatives 

markets 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: (I) 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, transmit reports to the Commission, and make recommendations to the 

Commission. 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. No determination of fact or policy shall be made by 

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. 

(S) 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. 
(7) Estimated Annual Operating Costs and Staff Years. 

The estimated annual operating costs for supporting the MRAC are approximately 

$81,000. This cost estimate includes costs associated with meeting expenses as well as 

the cost of .33 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 one or more full-time or 

permanent part-time Commission employee to serve as an alternate DFO for any 

established subcommittees. The DFO or alternate DFO 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 alternate DFO 

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 again in accordance with Section 14(a)(2)(A) ofthe FACA prior to such time. 

(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 ("SOE") or as a representative of an 

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

MRAC. SOE 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 an SOE 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. 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 are designated by the Commission to represent one of the viewpoint categories 

listed below. Though the categories and the precise number of members in any category 

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

18-35 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. Subcommittees 

may include as members individuals who are members of the MRAC and/or other 

individuals. Members of subcommittees shall be appointed in the same manner as 

members of the MRAC. 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. MRAC subcommittees may, by simple majority vote, 

adopt reports and/or recommendations of the MRAC subcommittee, transmit reports to 

the MRAC, and make recommendations to the MRAC. Reports and/or recommendations 

shall be developed in consulfation 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. 

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(14) Rccordkccping. 

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 Con1111ission'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 Committee Management Secretariat of the U.S. General Services 

Administration on May 9, 2018. 

ilii4tt2~ 

Secretary of the Commission 

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Dated: May 9, 2018 

Washington, D.C.