Derivatives, Legislative and Regulatory Weekly Update (September 19, 2025)
Client Alert | September 19, 2025
From the Derivatives Practice Group: This week, Acting Chairman Pham announced new leadership and members of the Global Markets Advisory Committee and subcommittees, and the CFTC and SEC voted to extend the Form PF compliance date to October 1, 2026.
New Developments
Acting Chairman Pham Announces New Leadership, Members of Global Markets Advisory Committee and Subcommittees. On September 19, CFTC Acting Chairman Caroline D. Pham announced new members of the Global Markets Advisory Committee (GMAC) and subcommittees, which she sponsors, including Scott Lucas, Managing Director, Head of Markets Digital Assets at J.P. Morgan, as co-chair of the GMAC’s Digital Asset Markets Subcommittee, together with co-chair Sandy Kaul, Executive Vice President at Franklin Templeton, and other appointees to GMAC, the new Global Market Structure Subcommittee, the Digital Asset Markets Subcommittee, and the Technical Issues Subcommittee. [NEW]
CFTC and SEC Extend Form PF Compliance Date to Oct. 1, 2026. On September 17, the CFTC and the SEC each voted to further extend the date for investment advisers to comply with amendments to Form PF, the confidential reporting form used by certain private fund advisers. The Commissions extended the compliance date to October 1, 2026. [NEW]
SEC Approves Generic Listing Standards for Commodity-Based Trust Shares. On September 17, the SEC voted to approve proposed rule changes by three national securities exchanges to adopt generic listing standards for exchange-traded products (ETPs) that hold spot commodities, including digital assets. As a result, the exchanges may list and trade Commodity-Based Trust Shares that meet the requirements of the approved generic listing standards without first submitting a proposed rule change to the Commission pursuant to Section 19(b) of the Exchange Act. Commissioners Peirce and Crenshaw each released statements regarding the approval. Commissioner Peirce said that the “streamlined listing process will benefit investors, issuers, other market participants, and the Commission by reducing the time and resources required to bring new ETPs to market.” Conversely, Commissioner Crenshaw said that “the Commission is passing the buck on reviewing these proposals and making the required investor protection findings, in favor of fast tracking these new and arguably unproven products to market,” and noted her belief that the generic listing standards are not appropriate for digital asset ETPs “due to the unique risks that still exist in the underlying crypto spot markets,” including volatility and a lack of guardrails comparable “to those that exist in regulated securities markets.” [NEW]
CFTC Will Permit U.S. Customers to Clear Yen Interest Rate Swaps at JSCC. On September 12, the Division of Clearing and Risk and the Market Participants Division of the CFTC issued Staff Letter No. 25-32 and the CFTC approved an Amended Order of Exemption from Registration as a Derivatives Clearing Organization for the Japan Securities Clearing Corporation (JSCC).U.S. customers that are eligible contract participants will now be permitted to clear Japanese Yen-denominated interest rate swaps through clearing members of JSCC where such clearing members are (i) not U.S.-incorporated, (ii) not registered as futures commission merchants (FCMs) and (iii) are affiliates of FCMs. This Gibson Dunn Client Alert has more details [NEW]
CFTC Withdraws Parts 37 and 38 Proposed Rule. On September 15, the CFTC announced it is withdrawing the proposed rulemaking for Parts 37 and 38. The CFTC stated in the notice of withdrawal that it is withdrawing the proposal to reconsider how the proposed rules would work given recent changes to the industry, innovation and evolving market structures. [NEW]
CFTC Staff Issues No-Action Letter to UBS Europe SE Concerning Provision of Affiliate Support Activities. On September 12, the CFTC’s Market Participants Division announced it issued a no-action letter extending to UBS Europe SE the no-action position in CFTC Staff Letter No. 12-70, notwithstanding that UBS Europe SE may be subject to statutory disqualification solely for the reasons described in the letter. [NEW]
CFTC Staff Withdraws Guidance on DCO Recovery Plans and Wind-down Plans. On September 1, the CFTC’s Division of Clearing and Risk announced it is withdrawing CFTC Letter No 16-61, Recovery Plans and Wind-down Plans Maintained by Derivatives Clearing Organizations and Tools for the Recovery and Orderly Wind-down of Derivatives Clearing Organizations, effective immediately. As stated in the withdrawal letter, because systemically important derivatives clearing organizations and derivatives clearing organizations that elect to be subject to Subpart C of Part 39 of the CFTC’s regulations are already required to maintain viable recovery and wind-down plans that are consistent with the risk management requirements of the Commodity Exchange Act, CFTC regulations, and relevant international standards, the guidance is duplicative and not necessary.
CFTC Withdraws Guidance Regarding Listing Voluntary Carbon Credit Derivative Contracts. On September 10, the CFTC announced the withdrawal of its “Guidance Regarding the Listing of Voluntary Carbon Credit Derivative Contracts.” The CFTC has determined the guidance resulted in placing a disproportionate focus on Voluntary Carbon Credit derivative contracts, which could lead to confusion and inconsistencies in implementing the CFTC’s existing, well-established product listing regulatory framework. This Gibson Dunn Client Alert has more details.
CFTC Issues Withdrawal of Operational Resilience Framework Proposed Rules. On September 9, the CFTC announced it is withdrawing the proposed rulemaking, “Operational Resilience Framework for Futures Commission Merchants, Swap Dealers, and Major Swap Participants.” As stated in the notice of withdrawal, the CFTC is withdrawing the proposal to reconsider how the proposed rules work in practice with the operational resilience rules of other regulators, including both domestic and foreign.
New Developments Outside the U.S.
ESMA Publishes 2025 IFRS Taxonomy. On September 11, ESMA published an amendment to the European Single Electronic Format Regulatory Technical Standard to include the 2025 update of the International Financial Reporting Standards (“IFRS”) taxonomy. The updated taxonomy reflects the latest developments in international financial reporting, including the introduction of IFRS 18 “Presentation and Disclosure in Financial Statements” and IFRS 19 “Subsidiaries Without Public Accountability.” These standards are currently undergoing the EU endorsement process, expected to be finalized in early 2026.
ESAs Note Greater Effort From Financial Market Participants in Disclosure of Principal Adverse Impacts. On September 9, the Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA – the “ESAs”) published their fourth annual Report on the extent of voluntary disclosure of principal adverse impacts (“PAIs”) under the Sustainable Finance Disclosure Regulation. The ESAs have observed a steady improvement in the quality of the PAI voluntary disclosures at both entity and product level.
ESMA Publishes Second Risk Monitoring Report. On September 9, ESMA published its second risk monitoring report of 2025, setting out the key risk drivers currently facing EU financial markets. Beyond the general risk drivers, ESMA’s report provided an update on structural developments and the status of key sectors of financial markets during the first half of 2025.
New Industry-Led Developments
ISDA Publishes Credit Derivatives Trading Activity Reported in EU, UK and US Markets: First Half of 2025 and Second Quarter of 2025. On September 16, ISDA published a report that analyzes credit derivatives trading activity reported in Europe. The analysis shows European credit derivatives transactions based on the location of reporting venues (EU versus UK) and product type. The report also compares European-reported credit derivatives trading activity to what is reported in the US. [NEW]
ISDA, IIF Respond to PRA on Adjustments to Basel 3.1 Market Risk Framework. On September 12, ISDA and the Institute of International Finance (“IIF”) submitted a joint response to the Prudential Regulation Authority’s (“PRA”) consultation on adjustments to the market risk capital framework. ISDA and the IIF strongly believe the market risk capital framework should be risk-appropriate and as consistent as possible across jurisdictions to ensure a level playing field without competitive distortions due to divergent rules. [NEW]
ISDA, IIF Respond to PRA on Adjustments to Basel 3.1 Market Risk Framework. On September 12, ISDA and the IIF submitted a joint response to the PRA’s consultation on adjustments to the market risk capital framework (CP 17/25). The response also includes further recommendations beyond the PRA’s proposed changes, which have been long-standing advocacy items and reduce the operational complexity of the framework and encourage wider adoption of internal models.
ISDA, EFAMA, AFME Respond to EC on Reducing Administrative Burden in Environmental Legislation. On September 10, ISDA, the European Fund and Asset Management Association, and the Association for Financial Markets in Europe submitted a joint response to the European Commission’s call for evidence on reducing the administrative burden in environmental legislation. The joint response supports the European Commission’s objective of reducing unnecessary administrative burdens while ensuring environmental objectives remain intact. [NEW]
ISDA, GFXD Respond to FCA on SI Regime for Derivatives and Bonds. On September 10, ISDA and the Global Foreign Exchange Division (GFXD) of the Global Financial Markets Association responded to the Financial Conduct Authority’s (FCA) consultation paper CP25/20 on the systematic internalizer (SI) regime for derivatives and bonds. ISDA and the GFXD said that they support the FCA’s proposal to remove the SI regime for derivatives and bonds, and also recommended measures to address some side effects of implementing the proposal. [NEW]
ISDA Responds to ESMA on Margin Transparency. On September 8, ISDA responded to a consultation by the European Securities and Markets Authority on a draft regulatory technical standard under the European Market Infrastructure Regulation (“EMIR 3.0”) on margin transparency requirements. ISDA’s members are supportive of margin transparency but believe transparency can be achieved in a more efficient manner.
ISDA Responds to ESMA on Clearing Costs. On September 8, ISDA responded to consultation by the European Securities and Markets Authority on a draft regulatory technical standard on clearing fees and associated costs. ISDA proposed that clearing service providers should be able to meet the new requirements under article 7c by referring to existing disclosures.
The following Gibson Dunn attorneys assisted in preparing this update: Jeffrey Steiner, Adam Lapidus, Marc Aaron Takagaki, Hayden McGovern, Karin Thrasher, and Alice Wang*.
Gibson Dunn’s lawyers are available to assist in addressing any questions you may have regarding these developments. Please contact the Gibson Dunn lawyer with whom you usually work, any member of the firm’s Derivatives practice group, or the following practice leaders and authors:
Jeffrey L. Steiner, Washington, D.C. (202.887.3632, jsteiner@gibsondunn.com)
Michael D. Bopp, Washington, D.C. (202.955.8256, mbopp@gibsondunn.com)
Michelle M. Kirschner, London (+44 (0)20 7071.4212, mkirschner@gibsondunn.com)
Darius Mehraban, New York (212.351.2428, dmehraban@gibsondunn.com)
Jason J. Cabral, New York (212.351.6267, jcabral@gibsondunn.com)
Adam Lapidus, New York (212.351.3869, alapidus@gibsondunn.com )
Stephanie L. Brooker, Washington, D.C. (202.887.3502, sbrooker@gibsondunn.com)
William R. Hallatt, Hong Kong (+852 2214 3836, whallatt@gibsondunn.com )
David P. Burns, Washington, D.C. (202.887.3786, dburns@gibsondunn.com)
Marc Aaron Takagaki, New York (212.351.4028, mtakagaki@gibsondunn.com )
Hayden K. McGovern, Dallas (214.698.3142, hmcgovern@gibsondunn.com)
Karin Thrasher, Washington, D.C. (202.887.3712, kthrasher@gibsondunn.com)
Alice Yiqian Wang, Washington, D.C. (202.777.9587, awang@gibsondunn.com)
*Alice Wang, a law clerk in the firm’s Washington, D.C. office, is not admitted to practice law.
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