CFTCProposed RuleSeptember 18, 2025

Requirements for Designated Contract Markets and Swap Execution Facilities Regarding Governance and the Mitigation of Conflicts of Interest Impacting Market Regulation Functions; Withdrawal

Finance & Banking

Summary

The CFTC is withdrawing a proposed rule that would have required futures and derivatives markets to have stronger oversight rules to prevent conflicts of interest in how they regulate themselves. This withdrawal means these markets will not be required to implement these new conflict-of-interest protections at this time.

Key Points

1The CFTC is canceling a proposed rule about governance standards for derivatives and futures exchanges
2The rule would have required these markets to better prevent situations where managers have conflicts of interest when making regulatory decisions
3Without this rule, exchanges have less stringent requirements to separate their profit-making activities from their market-policing responsibilities
4Traders and investors may have slightly less protection against potential unfair practices by exchange operators
5Financial industry groups that opposed this rule will not face these additional compliance requirements

Impact Assessment

If you are a futures or derivatives market operator, this means you are not required to implement new conflict-of-interest safeguards in your internal regulatory oversight at this time.

Impact Level

Moderate

Geographic Scope

National

Compliance Cost

None

Who is Affected

Financial Institutions

Key Dates

Published

September 18, 2025

Regulatory Connections

Authorized By

Commodity Exchange Act 15 U.S.C. § 78

Amends CFR Sections

17 CFR Part 3717 CFR Part 38

This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.