Created with Sketch.Menu Transparency
	Contact Us Search
Search
 Main navigation

      
      About the CFTC
                          The Commission
                        Chairman & Commissioners
                        CFTC Organization
                        Advisory Committees
                        Budget & Performance
                        Privacy at the CFTC
                        Careers
                        Diversity and Inclusion at the CFTC
                        Industry Oversight
                          Industry Filings
                        Trading Organizations
                        Clearing Organizations
                        Data Repositories
                        Intermediaries
                        Market Surveillance
                        Contracts & Products
                        Rules & Rule Amendments
                        Anti-Money Laundering
                        Law & Regulation
                          Commodity Exchange Act & Regulations
                        How Rules Are Made
                        Holding Wrongdoers Accountable
                        Federal Register
                        Public Comments
                        CFTC Staff Letters
                        Office of Technology Innovation
                        Market Data & Economic Analysis
                          Data at CFTC
                        Commitments of Traders
                        Bank Participation Reports
                        Cotton On-Call
                        Financial Data for FCMS
                        Net Position Changes Data
                        Staff Reports
                        Weekly Swaps Report
                        Cleared Margin Reports
                        Office of the Chief Economist
                        Forms & Submissions
                        Learn & Protect
                          Check Registration & Disciplinary History
                        Submit a Tip
                        Reparations Program
                        RED List
                        Advisories & Articles
                        Videos
                        Publications
                        News & Events
                          Press Releases
                        Public Statements & Remarks
                        Events Carousel Rotation On
              On


News & Events
  

        
      Press Releases
                        Public Statements & Remarks
                        EventsPublic Statements & Remarks
  

        
      Chairman Rostin Behnam
                        Commissioner Kristin N. Johnson
                        Commissioner Christy Goldsmith Romero
                        Commissioner Summer K. Mersinger
                        Commissioner Caroline D. Pham Public Statements & RemarksOpening Statement of Commissioner Christy Goldsmith Romero: Regulating for the Future
                                CFTC Open Meeting
                    July 26, 2023
    
          
            Derivative markets are at a period of evolution.  An evolution of technology.  An evolution of new products.  An evolution to more retail customers.  This period of evolution presents both very real opportunities and very real challenges.

We need to regulate for the future with the lessons learned from the past.  This period of evolution requires new ways of thinking about how best we can fulfill our mission.  Thinking through how we can stay ahead of emerging risks and threats so that we are not caught unaware.  Thinking through how we can use technology to meet requirements.  And always, ensuring that we serve public interests.

Today, we consider a rule related to exchanges’ self-certification of new products.  The Commission has an important responsibility to promote market integrity, to ensure the product complies with the law, and to understand risk related to the product.  New products do not come with a history of performance.  Commission staff have experienced a trend of submissions lacking enough information for the staff to fulfill the Commission’s regulatory responsibility.  I hope that this proposed rule fixes that.

We will also consider a final rule related to clearinghouse reporting.  While this rule strengthens some reporting, which is a good thing, the proposed rule grappled with the problem of the increased cyber threat as well as very real issues of technological misfunctions and glitches by proposing an expansion of incident reporting to the Commission.  Ultimately, the final rule does not take up the proposed expansion of reporting due to public comment.  It is important that we listen to public comment to get our rules in a workable form.  However, we still need to deal with the increased cyber threats and other incidents that our staff have felt should have been reported, but were not.  I urge us to continue the assessment of what is the correct fix to this very real evolution in the nature of incidents.

We also consider fixing what has become a technological challenge for Swap Execution Facilities to comply with requirements related to confirmations.  The proposed fix is to codify no action relief, which we granted for several years.  Generally speaking, I believe we need to be careful about granting and then codifying no action relief.  While I support revisiting the rule because of the technological challenges, I will be interested in public comment about whether this is the right fix.

Lastly, is a proposal that would provide relief from certain initial margin requirements for swap dealers for affiliated “seeded funds,” and to expand the use of money market funds as eligible collateral.  I cannot support this rule as I have serious concerns given the lessons learned from the past with the importance of initial margin and money market funds as was seen during the 2008 financial crisis, Dodd-Frank Act reforms, and the 2020 pandemic.  This is a rule recommended by the Global Markets Advisory Committee in 2020.  I appreciate their service.  However, there are important public interests at issue that are important to keep in mind for the future.

Most importantly, I want to thank the CFTC staff for their hard work on each of these rules.  They care about the markets we regulate, and they care about getting it right.  And for that, I am grateful.
      
    
          -CFTC- News & Events
  

        
      Press Releases
                        Public Statements & Remarks
                        Events Public Statements & Remarks
  

        
      Chairman Rostin Behnam
                        Commissioner Kristin N. Johnson
                        Commissioner Christy Goldsmith Romero
                        Commissioner Summer K. Mersinger
                        Commissioner Caroline D. Pham
 RELATED LINKS
    

      Event: CFTC to Hold a Commission Open Meeting on July 26


Resources

CFTC Regulations
	Commodity Exchange Act
	Privacy Policy
	Web Policy
	FOIA
	EEO Statement
	No Fear Act
	Accessibility Statement
	Procurement
	USA.gov
	Glossary

Actions

Search Public Comments
	Submit Tips & Complaints
	Search Industry FilingsWhistleblower.gov
	Office of Technology InnovationInspector GeneralSitemap

HomeCFTC Headquarters
Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581
202.418.5000