The CFTC approved the reestablishment of a Technology Advisory Committee (TAC), which is charged with keeping the Commission abreast of new technologies that will assist the federal agency to better oversee the derivatives markets. Commissioner Scott D. O’Malia, the newest Commissioner, confirmed last October, was selected to serve as Chairman of TAC for its two-year term.
“The market events of May 6th clearly highlight that technology drives the structure and function of the markets. Trades now take place in milliseconds and will soon take place even faster. We must develop a deep understanding of technological innovation and what it means for the markets we oversee. Therefore, I am pleased that the Commission has agreed to my request to reinstate this Committee,” stated O’Malia, who has pushed for the creation of the Committee since his appointment.
The Commission’s original TAC ceased operation when its, chapter expired in 2005. Since that time, technology has become increasingly important to participants in the derivatives markets—by providing participants with market information, trade modeling, trade execution, risk management and back office support.
The Committee will have a two-year term, during which the Committee will conduct public meetings, receive written recommendations from its members and the public and submit reports to the Commission that will inform the Commission of its technological opportunities and the need for regulation to support the Commission’s mission.