This Week in Derivatives

New Developments

• CFTC, SEC Further Extend Form PF Amendments Compliance Date. On June 11, the CFTC, together with the SEC, extended the compliance date for the amendments to Form PF, the confidential reporting form for certain SEC-registered investment advisers to private funds, including those that also are registered with the CFTC as commodity pool operators or commodity trading advisers, that were adopted February 8, 2024. The compliance date for these amendments, which was June 12, 2025, has been extended to October 1, 2025. The release provides that Form PF filers should continue to file the current version of Form PF until the date the release is published in the Federal Register. In connection with the extension, Commissioner Johnson released a statement indicating that the extension was due to “technology-based concerns as well as challenges with validation, testing, and ensuring effective capabilities for timely and accurate reporting of requested information.” [NEW]
• GENIUS Act. On June 11, the U.S. Senate advanced the Guiding and Establishing National Innovation for US Stablecoins Act, or GENIUS Act, which will now progress to debate and a full floor vote before the Senate determines whether to send it to the House of Representatives for further consideration. The GENIUS Act seeks to establish a federal regulatory framework for payment stablecoins, including definitions, registration requirements, and oversight mechanisms. It aims to provide legal certainty and consumer protections while fostering innovation by placing regulatory authority with federal agencies like the OCC and offering a path for nonbank entities to issue stablecoins under a national standard. [NEW]
• Senate Agriculture Committee Holds Hearing on Quintenz Nomination. On June 10, the Senate Agriculture Committee considered Brian Quintenz’s nomination for Chairman and Commissioner of the CFTC. In his opening remarks, he states that his goals for the agency will include risk management, fostering innovation, and facilitating reciprocity with foreign jurisdictions. The hearing also focused on several core issues including event contracts, resource allocation within the CFTC, and 24/7 trading. Quintenz states that, in his view, all event contracts are permissible under the Commodity Exchange Act, though he highlighted that the statute should be clarified with respect to its “gaming” provision. Quintenz also maintained that the CFTC should have more resources to allocate for digital asset oversight. Finally, with respect to 24/7 trading, Quintenz stated that he intends to listen to all stakeholders in determining which markets may allow for longer trading hours. Quintenz previously served as a CFTC commissioner from 2017 to 2021. [NEW]
• CLARITY Act. On June 10, the CLARITY Act, which seeks to establish a regulatory framework for digital assets in the U.S. and would give the CFTC authority over crypto spot markets, advanced to the full U.S. House of Representatives after passing in the House Committee on Financial Services (32 to 19), and the House Agriculture Committee (47 to 6). [NEW]
• SEC to Resume Processing of Registration Applications From Swiss-Based Investment Advisers. On June 10, the SEC announced that it will immediately resume processing new and pending registration applications of investment advisers with their principal office and place of business in Switzerland. [NEW]
• SEC Selects Jamie Selway to Run Trading and Markets Division. On June 5, Jamie Selway was selected to head the SEC’s Trading and Markets division. He previously withdrew his name from consideration when he was nominated for this role during the first Trump administration. Currently, Selway is a partner at Sophron Advisors.
• SEC Solicits Public Comment on the Foreign Private Issuer Definition. On June 4, the SEC issued a concept release soliciting public comment on the definition of foreign private issuer. The concept release solicits public input on whether the definition of foreign private issuer should be amended in light of significant changes in the population of foreign private issuers since 2003.
• CFTC Alerts Traders Domain Customers to July 28 Claim Deadline. On June 3, the CFTC alerted customers that the Traders Domain claims process will end July 28. Customers who believe they may be victims in this alleged fraud scheme are urged to complete the claims process by this date to be eligible for any future judgment.
• Natalia Díez Riggin Named Senior Advisor and Director of Legislative and Intergovernmental Affairs. On June 2, the SEC announced that Natalia Díez Riggin has been named Senior Advisor and Director of the agency’s Office of Legislative and Intergovernmental Affairs. Ms. Riggin has been serving as Acting Director since joining the SEC in January.
• CFTC Names Paul Hayeck as Acting Director of Division of Enforcement. On June 2, CFTC Acting Chairman Caroline D. Pham announced Paul G. Hayeck as the Acting Director of the Division of Enforcement. Hayeck has served at the CFTC for 25 years and has been a deputy director in the Division of Enforcement since 2013. He will continue to serve as the acting chief of the Division’s Complex Fraud Task Force.
• CFTC Adds 43 Unregistered Foreign Entities to RED List. On May 29, as part of the CFTC’s ongoing efforts to help protect Americans from fraud, the CFTC added 43 unregistered foreign entities to its Red List, a tool that provides information to U.S. market participants about foreign entities that are acting in an unregistered capacity and to help them make more informed decisions about trading. The Red List, which stands for Registration Deficient List, launched in 2015, and now contains almost 300 entities.
• CFTC Awards Approximately $700,000 to Whistleblower. On May 29, the CFTC announced a whistleblower award of approximately $700,000. The whistleblower information prompted the CFTC to open the investigation and described the misconduct that ultimately appeared in the order. The whistleblower also provided substantial assistance and helped the Commission conserve resources during the investigation.
• SEC Publishes Data on Regulation A, Crowdfunding Offerings, and Private Fund Beneficial Ownership Concentration. On May 28, the SEC published three new reports that provide the public with information on capital formation and beneficial ownership of qualifying private funds. The first two papers—analyses of the Regulations A and Crowdfunding markets—provide valuable information on how capital is being raised in the United States particularly by smaller issuers. The third paper on Qualifying Hedge Funds provides information on the interaction of beneficial ownership concentration, portfolio liquidity, investor liquidity, fund leverage, performance, and margins.

New Developments Outside the U.S.

• ESMA Publishes Principles for Third-party Risk Supervision. On June 12, ESMA published its newly developed Principles on third-party risks supervision. ESMA said that the principles aim at supporting a common and effective EU-wide supervisory culture. According to ESMA, the 14 principles on third-party risks were developed to address the growing risks observed over recent years in the use of outsourcing, delegation, or other types of third-party services by supervised firms and that they are intended to provide a common supervisory basis to National Competent Authorities and ESMA, enhance the robustness of supervisory frameworks and help supervised entities understand and manage third-party risks. [NEW]
• ESMA Urges Social Media Companies to Tackle Unauthorized Financial Ads. On May 28, ESMA wrote to several social media and platform companies encouraging them to take proactive steps to prevent the promotion of unauthorized financial services. This approach complements last week’s initiative launched by IOSCO, highlighting the global nature of doing online harm linked to financial misconduct.
• ESMA Renews the Mandate of the Chair and the Two Independent Members of the CCP Supervisory Committee. On May 28, ESMA renewed the mandates of Klaus Löber as Chair of the Central Counterparties (“CCP”) Supervisory Committee and Nicoletta Giusto and Froukelien Wendt as Independent Members. The renewed mandates will be effective as of December 1, 2025 for a 5-year period.

New Industry-Led Developments

• ISDA Launches Pre-adherence Period for Notices Hub. On June 12, ISDA began a pre-adherence process for the ISDA Notices Hub. The new protocol will change all agreements between adhering firms to allow them to use the ISDA Notices Hub – a secure online platform managed by S&P Global Market Intelligence that will enable the instantaneous delivery and receipt of termination notices and waivers ISDA has begun a pre-adherence process for the ISDA Notices Hub, enabling firms to sign up to a free protocol that will allow them to use the new platform when it launches on July 15. [NEW]
• ISDA Publishes “Creating Value – IQ” June 2025. On June 10, ISDA published ISDA Quarterly, which explored how and why different types of firms use derivatives and the value they bring to individual companies and the broader economy. The report was published to coincide with ISDA’s 40th anniversary, and continue ISDA’s IQ anniversary series by looking at how ISDA and its members have worked to address some of the biggest challenges ever to face derivatives markets – from the rollout of margin requirements for non-cleared derivatives to the transition from LIBOR. [NEW]
• ISDA Publishes Paper on the EC’s Sustainability Omnibus Proposal. On June 9, ISDA published a position paper setting out its views on the European Commission’s (EC) Sustainability Omnibus Package. In the paper, ISDA urges European authorities to, among other things, ensure a proportionate, harmonized and symmetrical approach to the use of derivatives across the EU’s sustainable finance framework in line with the EU’s Platform on Sustainable Finance derivatives recommendations. [NEW]
• ISDA Responds to HMT SI on Digital Assets. On May 23, ISDA sent a comment letter in response to a draft statutory instrument (“SI”) from His Majesty’s Treasury (“HMT”) that establishes a new regulatory framework for digital assets. In the letter, ISDA recommended a review of the proposed “safeguarding” activity, noting that the current definition and scope, particularly on “control” and acting “on behalf of another,” could unintentionally capture standard collateral arrangements in the derivatives market, including both security interest and title transfer structures.
• ISDA Provides Guidance for EU Model Application for ISDA SIMM®. On May 29, ISDA provided guidance to ISDA Standard Initial Margin Model (“SIMM”) users to promote awareness and facilitate a consistent approach to preparing data for the initial application. ISDA SIMM v2.7+2412 goes into effect on July 12, 2025, triggering the initial application requirement for its continued use by all financial and non-financial EU counterparties exchanging IM calculated using ISDA SIMM®.
• ISDA Publishes SwapsInfo for First Quarter of 2025. On May 27, ISDA published its SwapsInfo Quarterly Review. The review noted that interest rate derivatives trading activity increased in the first quarter of 2025, driven by elevated interest rate volatility, shifting central bank policy expectations and evolving inflation and growth outlooks. Trading in index credit derivatives also rose, as market participants responded to a changing macroeconomic environment and sought to manage credit exposure.
IOSCO Issues Final Report on Updated Liquidity Risk Management Recommendations for Collective Investment Schemes. On May 26, IOSCO published its Final Report on Revised Recommendations for Liquidity Risk Management for Collective Investment Schemes (“CIS”), alongside its Implementation Guidance. The Final Report includes 17 recommendations across six sections: CIS Design Process, Liquidity Management Tools and Measures, Day-to-Day Liquidity Management Practices, Stress Testing, Governance and Disclosures to Investors and Authorities.