CFTC agricultural advisory committee reviews Basel III, market tools at first 2026 meeting

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CFTC ag committee reviews Basel III

Highlights

CFTC agricultural advisory committee meeting addresses Basel III proposals, with presentations from OCC, Federal Reserve Board and FDIC on regulatory impacts.
Panel discusses risk management tool gaps for agricultural end users, featuring input from USDA, American Farm Bureau Federation, and other key industry groups.
AAC focuses on trading innovation, including funding rate mechanisms in perpetual futures, and examines how bank capital rules could affect farm hedging activity.

Washington meeting agenda and regulator presentations

As reported by the Commodity Futures Trading Commission, Chairman Michael S. Selig opens the meeting at 1 p.m. ET on Wednesday and says he aims to preserve a regulatory approach that supports industry growth and innovation while avoiding unnecessary burdens on the marketplace.

After Selig’s remarks, Senator Tommy Tuberville of Alabama urges committee members to raise unresolved issues in Washington, while AAC Chairman Ed Prosser says the forum is designed to examine how new technology could improve market efficiency and where existing commodity market structures may no longer fit current needs.

Representatives from the Office of the Comptroller of the Currency, the Federal Reserve Board and the Federal Deposit Insurance Corporation then present on the Basel III proposal, followed by committee discussion. CFTC Division of Data Director Jessica Harris also presents on the Commitments of Traders report before members move to a wider discussion of reporting and market oversight.

Focus on farm hedging gaps and trading innovation

Later in the session, Prosser convenes a panel on possible gaps in risk management tools for agricultural end users, with participants from the U.S. Department of Agriculture and industry groups including the American Farm Bureau Federation, the National Cattlemen’s Beef Association and the National Corn Growers Association.

The meeting also addresses newer market mechanics, with AAC member Liam Smith of PTG presenting on the funding rate mechanism used in perpetual futures. The session closes at 4 p.m. ET, after discussions that highlight the CFTC’s current focus on agricultural market access, derivatives structure and the potential effect of bank capital rules on farm-related hedging activity.

Cboe Global Markets’ strong second-quarter 2026 results underscored how rising derivatives activity and recurring market-data revenue are boosting exchange operators. Our earlier article noted record net revenue driven by higher index options volumes, along with continued investment in growth areas such as new contract types and expanded market access.

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