The US CFTC issues a proposed rule to strengthen the management of conflicts of interest among affiliated entities in the derivatives market.

The US Commodity Futures Trading Commission (CFTC) has issued a Notice of Proposed Rulemaking (NPRM), seeking public comment on revisions to CFTC Regulations Parts 37, 38, and 39, as well as Rules 1.52 and 1.55. The comment period will last 60 days after publication in the Federal Register. These revisions aim to address conflicts of interest arising from increased relationships among regulated entities such as Derivatives Clearing Organizations (DCO), Designated Contract Markets (DCM), Swap Execution Facilities (SEF), Futures Commission Merchants (FCM), and market makers. CFTC Chairman Michael S. Selig stated that the new rules will establish a principles-based regulatory framework for vertically integrated market structures, supporting innovation in the US derivatives market while maintaining market integrity.