CFTC Issues Proposed Rule on Regulated Entity Affiliate Relationships, Open for Public Comment for 60 Days
TechFlow news, July 31, according to the CFTC official website announcement, the U.S. Commodity Futures Trading Commission (CFTC) released a Notice of Proposed Rulemaking (NPRM) on July 30, soliciting public comments on revisions to Parts 37, 38, and 39 of the regulations and Rules 1.52 and 1.55, with a comment period of 60 days after publication in the Federal Register.
This revision addresses the increasing interconnections among CFTC-regulated entities, covering market participants such as Derivatives Clearing Organizations, Designated Contract Markets, Swap Execution Facilities, Futures Commission Merchants, and Market Makers, with a focus on resolving potential conflicts of interest in vertically integrated market structures.
CFTC Chairman Michael S. Selig stated that the proposed rules will establish a principles-based regulatory framework for vertically integrated market structures, maintaining market integrity while avoiding stifling innovative market structures or imposing excessive compliance burdens on registered entities.
