Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues

The CFTC-SEC Joint Advisory Committee on Emerging Regulatory Issues was established as one of the 20 recommendations included in the Commodity Futures Trading Commission (CFTC) and U.S. Securities and Exchange Commission (SEC)'s harmonization report issued in 2009.

CFTC Chairman Gary Gensler and Securities and Exchange Commission (SEC) Chairman Mary Schapiro served as co-chairs of the Joint Committee.

The goal of the joint committee was to develop recommendations on emerging and ongoing issues relating to both agencies.

The first item on the committee’s agenda was to conduct a review of the events of the so-called "flash crash" market decline in mid-2010, and make recommendations related to market structure issues that may have contributed to the volatility, as well as disparate trading conventions and rules across various markets.[1]

Panelists at Joint Advisory Committee meetings have included industry participants and experts including Craig S. Donohue, chief executive officer, CME Group (CME) and Edward J. Joyce, president and chief operating officer, Chicago Board Options Exchange, Inc. (CBOE)[2]

On February 18, 2011, the committee released a report highlighting regulatory recommendations in response to the flash crash of May 6, 2010. Recommendations include stock pauses ("circuit breakers"), restrictions on co-location and direct access, liquidity enhancements, and enhanced data collection by regulators.[3]

Charter

The Committee’s charter provided for a broad scope of interest, including: 1. Identifying of emerging regulatory risks; 2. Assessing and quantifying of the impact of such risks and their implications for investors and market participants; and 3. Furthering the CFTC’s and SEC’s efforts on regulatory harmonization.

Members

Initial Joint Committee members included:

  • Maureen O’Hara, Professor of Management, Professor of Finance, Cornell University
  • Brooksley Born, former chair of the CFTC
  • David Ruder, former chair of the SEC
  • Jack Brennan, former chief executive officer and chairman, Vanguard
  • Robert F. Engle, Michael Armellino Professor of Finance at the NYU Stern School of Business
  • Richard Ketchum, chairman and chief executive officer, FINRA
  • Susan Phillips, dean and professor of finance, The George Washington University School of Business

Resources

Meeting Statements And Presentations

References

  1. CFTC, SEC Form Joint Advisory Committee. Futures Mag.com.
  2. Press Release. CFTC.
  3. Recommendations Regarding Regulatory Responses to the Market Events of May 6, 2010 (the Report). SEC.
Last modified on 28 July 2016, at 02:16