CFTC Seeks Comment On The Governance Of Self-Regulatory Organizations

In connection with its ongoing review of self-regulation in the futures markets (SRO Study), the Commodity Futures Trading Commission (Commission) has published in the Federal Register a Request for Comments on the governance of self-regulatory organizations (SROs). The Request for Comments advances the Commission’s inquiry into the roles, responsibilities, and capabilities of SROs in the context of market changes. It also reaffirms that governance is a key component of the SRO Study because of the impact that SROs’ governing bodies can have on self-regulation.

The Request for Comments discusses recent changes in the futures industry and the Commission’s governance requirements prior to and after passage of the Commodity Futures Modernization Act of 2000. It then seeks comment from the public on a series of questions concerning board composition, regulatory structures, the impact of different business and ownership models, disciplinary committees, and transparency of operations. The Commission will also be forwarding today to each SRO a questionnaire that will help it to evaluate the governance structures, policies and procedures at each of the contract markets, clearing houses, and registered futures associations under the Commission’s purview.

Interested parties may submit their comments no later than 45 days after the publication of the Request for Comments in the Federal Register. All comments received will be posted on the Commission’s website