The US Commodity Futures Trading Commission (CFTC) held the second meeting of the Global Markets Advisory Committee (GMAC), on 17 July, under the sponsorship of Commissioner Caroline Pham.
In her opening statement, Commissioner Pham reiterated her previous statement that “global collaboration and coordination are critical to promoting regulatory cohesion and financial stability, and mitigating market fragmentation and systemic risk.” Pham noted that she scoured the globe to cultivate a “historically wide reaching” set of GMAC members and subcommittee members.
The meeting took place at the New York Stock Exchange, and its significant agenda included a discussion about US Treasury market reforms, with a focus on the potential impact to derivatives markets from proposed changes being considered by the SEC, and the CFTC’s upcoming changes to swap block thresholds, including a discussion around the challenges these changes could pose to market liquidity and execution quality. The meeting also featured a discussion about real-world use-cases for the tokenization of financial products and services, as well as applications of tokenization in non-financial activities.
The meeting also featured updates from the GMAC’s three advisory committees – the Global Market Structure Subcommittee, the Technical Issues Subcommittee, and the Digital Assets Markets Subcommittee.
Allison Lurton, FIA’s General Counsel and Chief Legal Officer, and Tara Kruse, ISDA’s Global Head of Infrastructure, Data, and Non-Cleared Margin, are co-chairing the GMAC Technical Issues Subcommittee and presented a summary about the workstreams they plan to tackle including:
Michael Winnike, BlackRock’s Head of US Market Structure, and co-chair of the Global Market Structure Subcommittee, previewed the workstreams his subcommittee plans to undertake including:
Caroline Butler, BNY Mellon’s Global Head of Digital Assets and Sandy Kaul, Franklin Templeton’s Head of Digital and Industry Advisory Services, as co-chairs of the Digital Assets Markets Subcommittee previewed their workstreams including: