SEC, CFTC Create Joint Advisory Committee On Emerging Regulatory Issues

Now, we’re getting somewhere! The SEC and CFTC are forming a joint committee to address emerging regulatory issues. The joint committee will develop recommendations on emerging and ongoing issues relating to both agencies. The first item on the committee's agenda is conducting a review of last Thursday's market events and making recommendations related to market structure issues that may have contributed to the volatility, as well as disparate trading conventions and rules across various markets. 

The Committee's charter provides for a broad scope of interest, including:
1.      Identifying of emerging regulatory risks.
2.      Assessing and quantifying of the impact of such risks and their implications for investors and market participants.
3.      Furthering the SEC's and CFTC's efforts on regulatory harmonization.
 
SEC chairman Schapiro and CFTC chair Gensler will serve as co-chairs of the Joint Committee.
 
Members of the Joint Committee include (additional members to join in coming days):
·                     Brooksley Born, former chair of the CFTC
·                     Jack Brennan, former chief executive officer and chairman, Vanguard
·                     Robert Engle, Michael Armellino Professor of Finance at the NYU Stern School of Business
·                     Richard Ketchum, chairman and chief executive officer, FINRA
·                     Maureen O’Hara, Professor of Management, Professor of Finance, Cornell University
·                     Susan Phillips, Dean and Professor of Finance, The George Washington University School of Business
·                     David Ruder, former chair of the SEC
 
The establishment of the Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues was one of the 20 recommendations included in the agencies' harmonization report issued last year. It’s not clear how many of the other 19 recommendations have been adopted so far.