SOURCE: Commodity Markets Council

Commodity Markets Council

April 20, 2009 14:58 ET

Commodity Markets Council Presents Four-Point Plan to Improve Transparency and Oversight in the Financial Markets

WASHINGTON, DC--(Marketwire - April 20, 2009) - Michael Walter, president of the Commodity Markets Council (CMC), the major association representing the interests of futures and option exchanges and their participants, issued the attached letter Friday, April 17, 2009, outlining CMC's plan for reforming the regulatory framework of US financial markets. CMC advocates for reform in four primary areas:

Enhanced Market Transparency

Exchange-traded markets are transparent and regulated. The reform measures, such as requiring additional transparency through reporting and clearing, should target less transparent markets. Additional transparency will provide useful information and allow regulators to effectively police commodities markets.

Increasing CFTC Resources

Congress should ensure that the CFTC has adequate resources and is fully staffed. Increasing the Commission's resources would represent a significant step in strengthening the CFTC oversight of regulated exchanges and linked markets.

Preserving Deep and Liquid Commodity Markets and Reliable Price Discovery

CMC members depend on efficient and properly functioning markets. Effective market oversight and greater transparency will ensure market confidence and participation, important components to deep and liquid markets. US markets must continue to serve as global benchmarks for world commodities markets.

Create a Systemic View of the Market

It is important to create a systemic view of the market to protect the entire financial system against broad risks. Such oversight should include the ability to create a comprehensive view of institutional risk portfolios in securities, commodities, futures, credit instruments, OTC traded and other exchange traded instruments. CFTC, SEC, and banking regulators should continue to have front-line responsibility to take necessary and appropriate action.

Commodity Markets Council's objective is to ensure fair and efficient markets that work effectively for everyone -- end users, market participants, exchanges, the general public, and regulators. We look forward to working with lawmakers and industry on additional improvements.

Commodity Markets Council, www.cmcmarkets.org, is a North American trade association that advocates open, competitive commerce by combining the expertise, knowledge and resources of its members to develop and support market based policy. CMC represents issues focusing on agriculture, energy, finance, metals, transportation and infrastructure. Its membership includes derivatives exchanges, domestic and multi-national commodity merchandisers, processors, bioenergy producers, futures commission merchants, food and beverage manufacturers.

Contact Information

  • Contact:
    Christine Cochran
    202.842.0400 ext 101