Proposed Rule2025-18070
Requirements for Designated Contract Markets and Swap Execution Facilities Regarding Governance and the Mitigation of Conflicts of Interest Impacting Market Regulation Functions; Withdrawal of Proposed Regulatory Action
Primary source
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Published
September 18, 2025
Issuing agencies
Commodity Futures Trading Commission
Abstract
The Commodity Futures Trading Commission ("Commission" or "CFTC") is formally withdrawing a notice of proposed rulemaking published on March 19, 2024, titled "Requirements for Designated Contract Markets and Swap Execution Facilities Regarding Governance and the Mitigation of Conflicts of Interest Impacting Market Regulation Functions."
Full Text
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<title>Federal Register, Volume 90 Issue 179 (Thursday, September 18, 2025)</title>
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[Federal Register Volume 90, Number 179 (Thursday, September 18, 2025)]
[Proposed Rules]
[Page 45007]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-18070]
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Proposed Rules
Federal Register
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This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 90, No. 179 / Thursday, September 18, 2025 /
Proposed Rules
[[Page 45007]]
COMMODITY FUTURES TRADING COMMISSION
17 CFR Parts 37 and 38
RIN 3038-AF29
Requirements for Designated Contract Markets and Swap Execution
Facilities Regarding Governance and the Mitigation of Conflicts of
Interest Impacting Market Regulation Functions; Withdrawal of Proposed
Regulatory Action
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice of withdrawal of proposed rules.
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SUMMARY: The Commodity Futures Trading Commission (``Commission'' or
``CFTC'') is formally withdrawing a notice of proposed rulemaking
published on March 19, 2024, titled ``Requirements for Designated
Contract Markets and Swap Execution Facilities Regarding Governance and
the Mitigation of Conflicts of Interest Impacting Market Regulation
Functions.''
DATES: The Commission is withdrawing the proposed rules published at 89
FR 19646 (March 19, 2024) as of September 15, 2025.
FOR FURTHER INFORMATION CONTACT: Rahul Varma, Acting Director, (202)
418-5353, <a href="/cdn-cgi/l/email-protection#b6c4c0d7c4dbd7f6d5d0c2d598d1d9c0"><span class="__cf_email__" data-cfemail="dba9adbaa9b6ba9bb8bdafb8f5bcb4ad">[email protected]</span></a>, Division of Market Oversight, Commodity
Futures Trading Commission, Three Lafayette Centre, 1155 21st Street
NW, Washington, DC 20581.
SUPPLEMENTARY INFORMATION:
Background
On March 19, 2024, the Commission published a notice of proposed
rulemaking in the Federal Register proposing new rules and amendments
to its existing regulations for designated contract markets (``DCMs'')
and swap execution facilities (``SEFs'') that would establish
governance and fitness requirements with respect to market regulation
functions, as well as related conflict of interest standards.\1\ The
proposed new rules and amendments included minimum fitness standards;
requirements for identifying, managing, and resolving conflicts of
interest; and structural governance requirements with respect to SEF
and DCM governing bodies. On April 25, 2024, the Commission published a
release in the Federal Register which extended the comment period for
the proposal to May 13, 2024.\2\
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\1\ Requirements for Designated Contract Markets and Swap
Execution Facilities Regarding Governance and the Mitigation of
Conflicts of Interest Impacting Market Regulation Functions, 89 FR
19646 (Mar. 19, 2024).
\2\ 89 FR 31669 (May 13, 2024).
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Withdrawal of Proposed Rules
The Commission is withdrawing the proposal to reconsider how the
proposed rules would work given recent changes to the industry and
evolving market structures. Many SEFs and DCMs are part of larger
corporate organizations that have already implemented governance
standards and requirements for conflicts of interest that would also
apply to market regulation functions. Thus, the Commission no longer
intends to issue final rules with respect to the proposal. If the
Commission decides to pursue future regulatory action in this area, it
will do so by publishing new proposed rules or other issuance
consistent with the requirements of the Administrative Procedure Act,
as applicable.
Executive Order 12866
The Office of Management and Budget has determined that this action
is not a significant regulatory action as defined in Executive Order
12866, as amended, and therefore it was not subject to Executive Order
12866 review.
Issued in Washington, DC, on September 16, 2025, by the
Commission.
Robert Sidman,
Deputy Secretary of the Commission.
Note: The following appendix will not appear in the Code of
Federal Regulations.
Appendix to Withdrawal of Commission Guidance--Commission Voting
Summary
On this matter, Acting Chairman Pham voted in the affirmative.
No Commissioner voted in the negative.
[FR Doc. 2025-18070 Filed 9-17-25; 8:45 am]
BILLING CODE 6351-01-P
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