The CFTC Divisions of Market Oversight, Swap Dealer and Intermediary Oversight, and Clearing and Risk warned regulated entities "to prepare for the possibility that certain contracts may continue to experience extreme market volatility, low liquidity and possibly negative pricing."
CFTC Commissioner Rostin Behnam warned of market risks associated with climate change. He advocated for increased disclosure, aligning incentives for best practices and more analysis and stress testing.
The CPMI and IOSCO concluded that the U.S. frameworks for systemically important payment systems, central securities depositories and securities settlement systems are consistent with the Principles for Financial Market Infrastructure.
JP Morgan Securities LLC, a registered futures commission merchant and swap dealer, agreed to pay a civil monetary penalty to settle CFTC charges that it failed to maintain adequate systems for reconciling exchange and clearing fees for trading of Chicago Mercantile Exchange products.
The CFTC Market Risk Advisory Committee approved final recommendations by the Central Counterparty Risk Management Subcommittee on how central counterparties can enhance their efforts to prepare for the default of significant clearing members.
The CFTC Market Risk Advisory Committee will hold a public meeting to examine (i) final recommendations from the CCP Risk Management Subcommittee on how central counterparties can enhance their efforts to prepare for the default of a significant clearing member, and (ii) the Bank of England's coordinated central counterparty default fire drill.