Regulatory Oversight Committee Best Practices Guide

This guide outlines the expectations, duties, and best practices for establishing a Regulatory Oversight Committee (ROC) within designated contract markets (DCMs). It begins by detailing the regulatory agenda set forth by the Commodity Futures Trading Commission (CFTC) Chairman, emphasizing the importance of minimizing conflicts of interest in DCM operations. The document explains the requirements for forming an ROC, which must consist solely of public directors, and the committee's role in overseeing the DCM's regulatory program. It further discusses the necessary functions of the ROC, including monitoring regulatory sufficiency and effectiveness, supervising regulatory personnel, and preparing annual reports. Additionally, the guide presents best practices for ensuring the independence of compliance functions within DCMs, highlighting the need for proper governance and oversight to maintain integrity and prevent conflicts of interest. Overall, this document serves as a comprehensive resource for DCMs aiming to enhance their compliance frameworks and regulatory oversight.