2025-18070: 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

Federal Register, Volume 90 Issue 179 (Thursday, September 18, 2025) [Federal Register Volume 90, Number 179 (Thursday, September 18, 2025)] [Proposed Rules] [Page 45007] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 2025-18070] ======================================================================== Proposed Rules Federal Register ________________________________________________________________________ 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. ======================================================================== 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. -----------------------------------------------------------------------

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, [email protected], 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\ --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- 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