THE UNITED STATES CFTC PROPOSES TO REVISE A NUMBER OF REGULATORY RULES TO STRENGTHEN CONFLICT OF INTEREST MANAGEMENT IN RELATED INSTITUTIONS

On 2 August, the United States Commodity Futures Trading Commission (CFTC) issued a notice of proposed rules (NPRM) for public comments on the revision of sections 37, 38, 39 and regulations 1.52 and 1.55 of the CFTC Regulations, for a 60-day period following the publication of the Federal Gazette. The revision is intended to address potential conflicts of interest arising from the increasing linkages between regulated institutions, such as the Derivatives Clearing Agency (DCO), the Designated Contract Market (DCM), the Swap Implementation Facility (SEF), futures commissioners (FCM) and marketers. The Chairman of the CTC, Michael S. Selig, said that the new regulations would establish a principles-based regulatory framework for vertical integration of market structures and support United States derivative market innovation while preserving market integrity。