CFTC Proposes Rules to Manage Conflicts Among Affiliated Derivatives Entities

The CFTC issued an NPRM to amend regulations on conflicts of interest for DCOs, DCMs, SEFs, and FCMs, aiming to balance innovation with market integrity.

Woofun AI reports that the U.S. Commodity Futures Trading Commission has published a Notice of Proposed Rulemaking to solicit public feedback on amendments to Parts 37, 38, and 39, as well as Sections 1.52 and 1.55. The comment period lasts 60 days from Federal Register publication.

The proposed changes target conflicts of interest stemming from the interconnectedness of regulated entities, including Derivatives Clearing Organizations, Designated Contract Markets, Swap Execution Facilities, Futures Commission Merchants, and market makers. Chairman Michael S. Selig stated the rules will create a principles-based framework for vertically integrated structures, supporting innovation while preserving market integrity.