FIA discusses climate-related risk to FIA members, derivatives industry

14 May 2020

FIA submitted comments to the Market Risk Advisory Committee Climate Subcommittee on the challenges and issues related to climate change.  FIA noted the importance of continued dialogue around climate-related issues for derivative markets and its belief that market forces are now, and can continue to be, part of the solution to the complex problem of climate change. 

FIA welcomes the efforts of the Commission, and the MRAC and Climate Subcommittee in particular, to proactively “identify and examine climate change-related financial and market risks, including for derivatives markets.”  

Many of FIA’s member firms are active, or support firms that are active, in physical commodities and related derivatives markets, which are directly impacted by climate and other environmental factors. Given this, climate change can pose a range of challenges for FIA’s member firms, including operational, technological, legal and regulatory. In many cases, the challenges are just recently emerging and, as such, are not yet fully understood or even readily identifiable.  FIA looks forward to continuing the dialogue with the CFTC and other regulators as these challenges and solutions that the derivatives markets can offer more fully emerge.

  • FIA
  • Americas
  • Commodities
  • Sustainable Finance
  • Regulatory Responses