CFTC Agricultural Advisory Committee Discusses Basel III, 24/7 Trading, and Perpetual Futures

The Commodity Futures Trading Commission (CFTC) held its first Agricultural Advisory Committee (AAC) meeting of 2026 in Washington, gathering market participants, regulators, and industry representatives to examine key market structure developments, risk management, and regulatory frameworks. The meeting opened with remarks from CFTC Chairman Michael S. Selig, Senator Tommy Tuberville, and AAC Chairman Ed Prosser. Chairman Selig emphasized the agency's commitment to supporting market efficiency and innovation without creating unnecessary regulatory friction. Chairman Prosser highlighted the importance of examining how new market structures and technologies affect existing commodity markets and efficiencies. A central focus of the agenda was a joint presentation by representatives from the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board, and the Federal Deposit Insurance Corporation (FDIC) detailing the Basel III proposal and its implications for market participants, followed by an open discussion with committee members. The committee also addressed agricultural market data and risk management frameworks. CFTC Division of Data Director Jessica Harris delivered a briefing on the Commitments of Traders (COT) Report. Additionally, a panel featuring representatives from the U.S. Department of Agriculture (USDA), the American Farm Bureau Federation, the National Cattlemen’s Beef Association, and the National Corn Growers Association reviewed potential gaps in risk management tools available to agricultural end users. The session concluded with a discussion on evolving trading mechanics, including a presentation by AAC member Liam Smith representing PTG on perpetual futures funding rate mechanisms, before adjourning.