Details
John Bottega Speaks at CFTC’s Market Risk Advisory Committee Meeting
On December 10,2024, John Bottega, President of the EDM Council, addressed the CFTC Market Risk Advisory Committee (MRAC) to emphasize the critical role of the Legal Entity Identifier (LEI) in managing systemic risk.
Drawing from his extensive experience—including co-authoring the Linchpin Paper that led to the LEI’s creation—Bottega highlighted how standardized identifiers and strong data management practices are essential for financial stability, crisis response, and regulatory transparency.
Key takeaways:
- The LEI is fundamental for aggregating financial risk exposure and ensuring accurate reporting.
- The Financial Data Transparency Act (FDTA) reinforces the need for structured, machine-readable data.
- Effective data standards + governance enable proactive risk management and AI-driven analytics.
- Aligning U.S. regulations with global LEI requirements strengthens market integrity.
Bottega commended MRAC’s proposal to amend CFTC Rule 39.19, ensuring LEI adoption at the beneficial account owner level—a move that will enhance transparency and risk oversight in U.S. financial markets.