The Commodity Futures Trading Commission today published a Notice of Proposed Rulemaking seeking public comment on amendments to Part 37, Part 38, and Part 39 of the CFTC’s regulations, as well as Commission regulations 1.52 and 1.55.
The Commission has continued to observe growth in the number of affiliations between CFTC-regulated entities — including derivatives clearing organizations, designated contract markets, swap execution facilities, futures commission merchants, and other market participants — such as market makers. In light of these developments, the Commission proposes new rules and amendments to its existing regulations to address issues that may arise in connection with such firms, including with respect to perceived and potential conflicts of interest.
“By setting forth principles-based regulations for vertically integrated market structures, the CFTC is taking a significant step in our continued efforts to support responsible innovation in U.S. derivatives markets,” said Chairman Michael S. Selig. “This proposal would institute purpose-fit rules of the road that bolster market integrity without stifling novel market structures or imposing excessive compliance costs on registrants.”
Comments will be accepted for 60 days following publication in the Federal Register.
