Commodity Futures Trading Commission to meet on climate-related financial risks

The Commodity Futures Trading Commission’s Market Risk Advisory Committee (MRAC) will hold a meeting to discuss climate-related financial risks.

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The meeting, which will be held on June 12 at CFTC’s Washington, DC headquarters, will feature a series of panels where MRAC members and guests will discuss the impact of climate change on the future stability of the global financial system. They will also talk about current domestic and international initiatives addressing financial risks related to climate change as well as financial industry approaches to the management and mitigation of such risks. Additionally, the meeting participants will examine the challenges ahead for regulators and market participants in the derivatives industry.

“The impacts of climate change affect every aspect of the American economy – from agriculture to manufacturing. Assessing climate-related market risk that could impact the stability of our nation’s financial system must be a priority. It’s time for the United States to take a more active leadership role and join our international counterparts in addressing this issue,” Rostin Behnam, CFTC Commissioner and MRAC sponsor, said. “This meeting will serve as an important first step towards a comprehensive review of what we can do now to prepare for and mitigate the market risks of climate change to American businesses, farmers, investors, financial institutions, and the broader economy. I look forward to hearing from our distinguished group of experts as well as our MRAC members and thank them in advance for their efforts on this critically important issue.”

The committee will also receive a status report from the Interest Rate Benchmark Reform Subcommittee. Further, there will be a presentation on European Market Infrastructure Regulation (EMIR), central counterparty stress testing, and Brexit from Steven Maijoor, chair, European Securities and Markets Authority (ESMA).

The meeting is open to the public.