CFTC seeks comment on proposed rules for affiliations among regulated entities
The CFTC is proposing changes to several rules after saying it has seen more affiliations between regulated entities and other market participants, including market makers.
The Commodity Futures Trading Commission said Tuesday it published a Notice of Proposed Rulemaking and is seeking public comment on amendments to several regulations governing affiliated firms.
The proposal would amend Part 37, Part 38 and Part 39 of the CFTC’s regulations, along with Regulations 1.52 and 1.55, according to the agency. The CFTC said affiliations between CFTC-regulated entities and other market participants, including market makers, have increased.
The agency said those affiliations can create perceived and potential conflicts of interest. It said the changes are meant to address those issues while keeping market rules workable for firms operating in U.S. derivatives markets.
The press release identifies derivatives clearing organizations, designated contract markets, swap execution facilities and futures commission merchants as regulated entities involved in these affiliations. It does not say how many firms would be affected.
Chairman Michael S. Selig said the proposal is a step in the CFTC’s efforts to support responsible innovation in U.S. derivatives markets. He said the agency wants “purpose-fit rules of the road” that support market integrity without stifling novel market structures or imposing excessive compliance costs on registrants.
The CFTC said the notice opens a public comment period, but the release did not include a deadline in the material provided.
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