CFTC Withdraws Governance Proposal for DCMs and SEFs

The CFTC withdrew a March 2024 proposal to establish new governance and conflict-of-interest requirements for designated contract markets ("DCMs") and swap execution facilities ("SEFs").

In the withdrawal notice, the CFTC said that many SEFs and DCMs already operate under corporate governance and conflict-of-interest standards that cover market regulation functions, making additional rules unnecessary given current practices and evolving industry structures. As a result, the CFTC said the proposal offered limited benefit.

The proposal was withdrawn effective immediately. The CFTC added that any future action in this area would proceed through new rulemaking under the Administrative Procedure Act.