CFTC proposes rules on affiliations among regulated entities
CFTC issued a Notice of Proposed Rulemaking amending Parts 37, 38, 39 and regulations 1.52 and 1.55 addressing affiliations among CFTC-regulated entities.
The CFTC is responding to growing consolidation across derivatives clearing organizations, contract markets, swap execution facilities, and futures commission merchants. Proposed amendments target governance, conflicts of interest, and risk controls where affiliated entities operate across the derivatives value chain.
Affects group structure, conflicts management, and operational risk frameworks for firms with multiple CFTC-registered affiliates.
Action Required
Review affiliation structures across DCOs, DCMs, SEFs, and FCMs and prepare comment submissions on proposed governance and conflict controls.
Signals structural regulatory response to vertical integration in US derivatives markets with implications for governance and market integrity.
Monitor CFTC NPRM on affiliated entity governance; assess impact on group conflicts frameworks, clearing, execution, and FCM affiliates; prepare comment response and update conflicts and outsourcing controls.
“CFTC published a Notice of Proposed Rulemaking amending Parts 37, 38, 39 and regulations 1.52 and 1.55, citing continued growth in affiliations among DCOs, DCMs, SEFs, FCMs and other regulated entities.”