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Derivatives Regulatory Reform

A&O Shearman

EC adopts amendments to Delegated Regulation No 876/2013 to align with EMIR 3 reforms

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The European Commission has adopted a Delegated Regulation amending Delegated Regulation (EU) No 876/2013, which supplements EMIR (Regulation (EU) No 648/2012) in relation to the functioning and management of colleges for...more

A&O Shearman

UK permanently exempts UK and EEA pension schemes from the derivatives clearing obligation

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The Pension Fund Clearing Obligation Exemption (Amendment) Regulations 2025 (SI 2025/670) have been published, alongside an explanatory memorandum. The regulations amend the UK version of Regulation 2012/648 (UK EMIR) and...more

Stikeman Elliott LLP

Coming Soon: Amendments to Canada’s OTC Derivatives Trade Reporting Regime

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The Canadian Securities Administrators (“CSA”) have released several updates in the last year to Canada’s trade reporting regime for over-the-counter (“OTC”) derivatives. In July 2024, all members of the CSA published final...more

Jones Day

Congressional Review Act: How Congress Can Rescind the Former Administration's Guidance on the Environment, Climate, and Energy

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On January 30, 2025, Senator John Kennedy of Louisiana proposed a joint resolution of disapproval aimed at rescinding the recent Commodity Futures Trading Commission ("CFTC") Guidance on Carbon Credits ("the Guidance"). The...more

A&O Shearman

Corrigendum to EMIR 3 clarified counterparty risk rules for MMFs

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A corrigendum to Regulation (EU) 2024/2987, known as EMIR 3, was published in the Official Journal of the European Union. One of the changes EMIR 3 made was to amend the Money Market Funds Regulation (MMF Regulation) by...more

A&O Shearman

Delegated regulation on identifying reference data for OTC derivatives published in OJ

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Commission Delegated Regulation (EU) 2025/1003 has been published in the Official Journal of the European Union (OJ), supplementing the EU Markets in Financial Instruments Regulation (MiFIR) as regards over-the-counter...more

Katten Muchin Rosenman LLP

Unpacking CFTC Letters 25-09 and 25-10

Derivatives market participants continue to process the implications of two significant interpretive letters issued by the Commodity Futures Trading Commission (CFTC) staff earlier this year. Letter 25-09 effectively...more

Cadwalader, Wickersham & Taft LLP

Certainty and Uncertainty, May 2025 - Emerging Market Trends in Derivatives Industry

In the post-pandemic world, several trends are developing that will fundamentally change the way financial market participants manage commercial risk or trade traditional and rapidly evolving novel assets, while new classes...more

A&O Shearman

ESMA response to EC's review of commodity derivatives markets

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The European Securities and Markets Authority (ESMA) has published a response to the European Commission's consultation on the functioning of commodity derivative markets and certain aspects of spot energy markets. ESMA...more

A&O Shearman

FCA Handbook Notice 129

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The UK Financial Conduct Authority (FCA) has published Handbook Notice 129 which sets out changes to the classes of derivatives subject to the derivatives trading obligation (DTO), following policy statement PS25/2 published...more

Latham & Watkins LLP

Close-Out Netting in the Kingdom of Saudi Arabia

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In recent years, the Kingdom of Saudi Arabia (the Kingdom) has increasingly sought to position itself as a Middle Eastern jurisdiction that is open for global business. Key to this is establishing robust, competitive and...more

A&O Shearman

U.K. regulators seek to improve margin requirements for non-centrally cleared OTC derivatives

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The U.K. Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) recently launched a joint consultation on proposed amendments to the margin requirements for non-centrally cleared derivatives.1...more

Faegre Drinker Biddle & Reath LLP

What the CFTC’s Recent Actions on Digital Assets and Environmental/Sustainable Commodities Signal to the Market

Digital Assets: From Enforcement to Opportunity - In March 2025, the Commodity Futures Trading Commission (CFTC) removed its advisory, Review of Risks Associated With Expansion of DCO Clearing of Digital Assets, with...more

Moore & Van Allen PLLC

The Desk: May Edition

On April 17, 2025, as previewed in the Division of Enforcement’s (“DoE”) February 25, 2025, “Advisory on Self-Reporting, Cooperation, and Remediation”, the Staff of the Market Participants Division (“MPD”) laid the remaining...more

A&O Shearman

ESMA calls for clarity on the qualification of fractional shares

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The European Securities and Markets Authority (ESMA) has published a letter to the European Commission on the inconsistent regulation of trading of fractional shares across the EU. There has been an increase in the...more

A&O Shearman

EMIR 3: ESMA proposes clearing thresholds

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The European Securities and Markets Authority (ESMA) has published a consultation paper setting out draft regulatory technical standards (RTS) amending the RTS on the clearing thresholds (CTs) under the European Markets...more

A&O Shearman

ESMA MiFIR review consultation package on derivatives transparency, package orders and CTP data

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The European Securities and Markets Authority (ESMA) has launched its consultation in relation to derivatives transparency, package orders, and input and output data for consolidated tape providers (CTPs). This is the fourth...more

A&O Shearman

UK FCA policy statement on the DTO and PTRR services

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The UK Financial Conduct Authority (FCA) has published its policy statement (PS25/2) with final rules on the classes of derivatives subject to the derivatives trading obligation (DTO) and the new framework for the exemptions...more

A&O Shearman

Heightened Surveillance And Regulatory Requirements For Virtual Currency Derivatives Exchanges Withdrawn

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On March 28, 2025, the Commodity Futures Trading Commission (“CFTC”) Division of Market Oversight (“DMO”) and Division of Clearing and Risk (“DCR”) withdrew Staff Advisory No. 18-14, Advisory with respect to Virtual Currency...more

Cadwalader, Wickersham & Taft LLP

New Regulatory Priorities Spring Into Focus, April 2025 - Business As Usual for Digital Asset Derivatives – CFTC Advisories...

Friday, March 27, 2025, the US Commodity Futures Trading Commission (CFTC) formally withdrew two crypto-related staff advisories, Staff Advisory No. 18-14 (advisory with respect to virtual currency derivative product...more

Katten Muchin Rosenman LLP

CFTC Withdraws Pair of Advisories on Heightened Review Approach to Digital Asset Derivatives

On March 28, the staff of the Commodity Futures Trading Commission (CFTC) issued two press releases announcing the withdrawal of two previous advisories that reflected the agency's heightened review approach to digital asset...more

Morrison & Foerster LLP

CFTC Staff Withdraws Advisory on Virtual Currency Derivative Product Listings

On March 28, 2025, the U.S. Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (DMO) and Division of Clearing and Risk (DCR) announced in CFTC Letter 25-07 that they are withdrawing CFTC Staff Advisory...more

A&O Shearman

UK regulators consult on changes to margin requirements for non-centrally cleared derivatives

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The Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) have opened a consultation on margin requirements for non-centrally cleared derivatives. The proposals are to: - Make permanent the current...more

Cadwalader, Wickersham & Taft LLP

Regulation in Flux, March 2025 - Key Takeaways From CFTC Acting Chairman Caroline Pham’s FIA Boca 50 Keynote

On March 11, 2025 at the 50th Annual International Futures Industry (“FIA”) Conference, Commodity Futures Trading Commission (“CFTC”) Acting Chairman Caroline Pham delivered a ground-breaking keynote covering administrative...more

Holland & Knight LLP

Election Contracts and Sports Event Contracts: The Future of Regulated Event-Based Trading

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The emergence of event-based trading platforms such as KalshiEX LLC and Crypto.com/Nadex has sparked a heated regulatory and policy debate over the boundaries of financial derivatives, speculation and gambling. Both platforms...more

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