CFTC Acting Chair Pham on Market Resilience, 24/7 Trading, and Digital Assets

Market Resilience Amidst Volatility

• 💡 The US markets operated in a functional and liquid manner despite significant volatility and record trading volumes.
• ✅ Regulators were pleased to see that margin reforms implemented after March 2020 prevented a repeat of the "dash for cash" scenario.
• 🔍 The CFTC maintained close contact with market infrastructures and participants, reporting no significant operational issues during market stress.

Innovation in Trading Hours

• 🚀 The CFTC is exploring the potential for 24/7 trading in derivatives markets, driven by an administration that is pro-innovation.
• ❓ A request for comment seeks to understand the uses, benefits, and risks associated with extended trading hours.
• 🎯 Continuous trading is deemed appropriate for sufficiently liquid asset classes like crypto and futures, but will be assessed on a product-by-product basis.
• ⚠️ Caution will be exercised for products not currently trading continuously, such as agricultural futures.

Digital Assets and Regulatory Cooperation

• 🤝 The CFTC and SEC aim to reset their relationship to traditional cooperation on issues of jurisdictional lines, particularly concerning cryptocurrency.
• 💬 The executive order on digital assets and the President's working group are fostering open communication among regulators.
• ⚖️ The goal is to create greater regulatory clarity in the United States for crypto assets.

CFTC Efficiency and Fiscal Responsibility

• 💰 CFTC efficiency initiatives have already resulted in $18 million in savings, with projections to save $50 million annually.
• ✂️ Savings are achieved through common-sense contract reviews, eliminating redundancies, and ensuring payment only for necessary services.
• 🔬 Funds saved are being redirected towards essential upgrades, such as improving technology.

Market Integrity and Fundamentals

• 📊 The CFTC's core mission is to ensure safe and sound markets, preserve market integrity, and ensure markets are well-functioning.
• 🔗 A key focus is maintaining an actual connection to the fundamentals underlying market movements.
• 🚫 The regulator's job is to ensure market integrity regardless of external factors or specific digital assets.