Commissioner Pham Announces Proposed Work Program for CFTC Global Markets Advisory Committee and Seeks Input by May 30

The Commodity Futures Trading Commission, CFTC, has published a press statement in which it presents and seeks comments on the 2023 – 2025 work program for its Global Markets Advisory Committee (GMAC) which itself consists of three sub-committees, namely the Global Market Structure Subcommittee, the Digital Asset Markets Subcommittee, and the Technical Issues Subcommittee*. The work program outlines key activities the sub-committees will engage in over the next three years and include the following (as quoted):
#### Global Market Structure Subcommittee:
– Examine Treasury market reform impact on derivatives markets, including (i) recommendations for cross-margining between futures and cash markets and (ii) changes to derivatives market structure from cash market proposals
– Examine role of derivatives for proper asset-liability management and functioning of funding markets
– Provide recommendations for global standards and best practices for market volatility controls and circuit breakers
– Provide recommendations to improve liquidity across asset classes, including commodities, rates, and credit markets, with respect to capital, clearing, and collateral requirements
– Provide recommendations for international alignment of trading and clearing obligations to address market fragmentation, including swap execution facility (SEF)/multilateral trading facility (MTF) requirements
#### Digital Asset Markets Subcommittee:
– Provide recommendations for industry standards and best practices for tokenized asset markets including (i) digital assets taxonomy, (ii) pre-trade, execution, and post-trade requirements, and (iii) governance, risk, and control frameworks
– Provide recommendations for the regulation of non-fungible tokens (NFTs) and utility tokens
– Identify other issues to address in digital finance and tokenization of assets, non-financial activities and Web3, and blockchain technology
#### Technical Issues Subcommittee:
– Provide recommendations to improve international standardization and amalgamation of trade reporting for swaps market oversight
– Provide recommendations for global coordination of market events such as closures, drills, or recovery from disruption
– Provide recommendations to improve efficiencies in post-trade processes
– Identify other infrastructure issues to address that impact cross-border activity and access to markets
Comments on the above noted roadmap or any other issues financial market participants may find worth to be considered should be submitted to the CFTC up to May 30, 2023 via the following e-mail address: GMAC_Submissions@cftc.gov. The header should include “GMAC work program input”.