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. §§ 1001-1014. 

(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 advise 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. § 1008(b), 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 reports 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 

$225,000. This cost estimate includes costs associated with meeting expenses as well as 

the cost of .6 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 5 U.S.C. § 1013(a)(2)(A). 

(12) Membership and Designation. 

The MRAC shall consist of approximately 18-37 members (voting and nonvoting). 

Representatives from the Regional Reserve Banks of the Federal Reserve System as well 

as regular government employees may serve as nonvoting members on the MRAC or an 

MRAC subcommittee. MRAC members shall be appointed and may be removed by vote 

of the Commission. MRAC 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. 

MRAC members are selected to represent a balance of viewpoints that are necessary to 

effectively address the issues to be considered by the MRAC. The membership 

represents a wide range of perspectives and interests, and may include the viewpoint 

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categories listed below. The viewpoint categories and the precise number of members in 

any category may vary over time depending on the work of the Committee. 

(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. 

The MRAC may be composed of representative members, special government employee 

members (“SGE”), and regular government employee (“RGE") members. Representative 

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

the views and interests of the organizations or groups that they represent. The 

Commission may appoint individuals to serve as representative members. Alternatively, 

the Commission may appoint organizations that are affected by the MRAC’s work, or 

whose members are affected by the MRAC’s work, to serve as members and designate 

individuals (with final approval by the Sponsor) to represent the organization or, where 

relevant, the organization's members. The member organization may also designate an 

alternate with Sponsor approval. 

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 Commission shall 

not appoint federally registered lobbyists to serve as SGEs on the MRAC. RGE members 

provide their own independent judgment in Committee deliberations, and may provide 

their agency’s or department’s views on matters discussed or deliberated upon at 

Committee meetings. 

(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. 

Subcommittee members shall be removed 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 

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