CFTC Proposes Rules to Manage Conflicts in Affiliated Derivatives Entities

CFTC issues NPRM to amend regulations for DCOs, DCMs, and FCMs, aiming to curb conflicts of interest in vertically integrated markets while preserving integrity.

Woofun AI reports that the U.S. Commodity Futures Trading Commission has issued a Notice of Proposed Rulemaking to amend Parts 37, 38, and 39, as well as Sections 1.52 and 1.55 of its regulations. The proposal targets potential conflicts of interest stemming from the growing interconnectedness among regulated entities, including Derivatives Clearing Organizations, Designated Contract Markets, Swap Execution Facilities, Futures Commission Merchants, and market makers.

CFTC Chairman Michael S. Selig stated that the new framework will be principles-based, designed to support innovation within the U.S. derivatives market while maintaining market integrity. Public comments on the proposed amendments are accepted for 60 days following publication in the Federal Register.