Client Alert | December 12, 2025
From teh Derivatives Practice Group: This week, the CFTC was especially active, issuing several no-action letters, including to designated contract markets and derivatives clearing organizations regarding event contracts and in response to a request from ISDA regarding Part 43 and part 45 requirements.New Developments
Acting Chairman Pham Announces Implementation of U.S. Treasury Market Reforms. On December 12, CFTC Acting Chaiman Pham announced the CFTC had approved a proposed order to grant a limited exemption necessary for the chicago Mercantile Exchange Inc.and the fixed Income Clearing Corporation to make their existing cross-margining arrangement available to certain customers with appropriate safeguards. [NEW]
U.S. Senate Passes Procedural Vote for Mike Selig, Paving the Way for a final Vote in the Senate. On December 11, the Senate voted 52-47 to approve a resolution that sets up the final vote for Mike SeligS confirmation as CFTC Chairman. [NEW]
CFTC Staff Issues No-Action Letters Regarding Event Contracts. On December 11, the CFTC’s Division of Market Oversight and Division of Clearing and Risk announced they have taken a no-action position regarding swap data reporting and recordkeeping regulations in response to requests from multiple registered entities, including designated contract markets and derivatives clearing organizations. according to the announcement, the Divisions will not recommend the CFTC initiate an enforcement action against certain registered entities or their participants for failure to comply with certain swap-related recordkeeping requirements and for failure to report to swap data repositories data associated with binary option transactions executed on or subject to the rules of the registered entities, subject to the terms of the no-action letters.[NEW]
CFTC Staff Issues no-Action Position Relating to Designated Contract Market Procedures. On December 11, the CFTC’s division of Market Oversight announced it has issued a no-action letter to Small Exchange Inc., a designated contract market, which addresses certain procedures related to dormancy. The no-action position is time-limited and subject to the terms and conditions in the Division’s no-action letter. [NEW]
Acting Chairman Pham Announces Withdrawal of “Outdated” Digital Assets Guidance.On December 11, CFTC Acting Chairman Pham announced that the CFTC will withdraw “outdated” guidance related to actual delivery of “virtual currencies,” given the considerable developments in crypto asset markets. The CFTC said that the withdrawal of the guidance will enable the CFTC to continue its ongoing work to implement the recommendations in the president’s working Group on Digital Asset Markets report. [NEW]
CFTC Staff Issues No-Action Letter Regarding Part 43 and part 45 Requirements. On December 11, the CFTC’s Division of Market Oversight took a no-action position in response to a request from the International Swaps and Derivatives Association regarding certain data requirements.
CFTC and ESMA Updates: December 2025
CFTC Updates
the Commodity Futures Trading Commission (CFTC) has announced amendments to its Rules of Practice and its Rules Relating to investigations. These changes aim to increase transparency in enforcement actions and improve the accuracy of the administrative record through enhanced internal memoranda when the Division of Enforcement recommends enforcement.
New Developments Outside the U.S.
ESMA Appointments and Leadership Changes: on December 11, the European Securities and Markets Authority (ESMA) appointed Marie-Anne Barbat-Layani of Autorité des Marchés Financiers (France) and Christopher P. Buttigieg of Financial Services authority (Malta) to its Management Board. Armi Taipale of Finanssivalvonta (Finland) was also reappointed for a second mandate. Additionally, ESMA Chair Verena Ross announced on December 10 that she will not seek a second term, concluding her work on October 31, 2026, with a selection process for a new Chair now underway.
ESMA Supervisory Expectations and Market Integration: ESMA published a Final Report on December 10 outlining 12 high-level principles for Supervisory Expectations for the Management Body, applicable to entities supervised by or seeking licenses from ESMA. On December 4, ESMA welcomed the European Commission’s legislative proposal on market integration and supervision, viewing it as a significant step towards more efficient EU capital markets.
ESMA Supervisory Actions: ESMA announced on December 2 that it will launch a Common Supervisory Action (CSA) with National Competent Authorities to assess compliance with MiFID II conflicts of interest requirements in the distribution of financial instruments to retail clients.
Industry-Led Developments:
On December 12, global standard-setting bodies published an assessment of margin requirements for non-centrally cleared derivatives.
Legal Update: Derivatives Practice – Gibson Dunn & Crutcher LLP
gibson Dunn & Crutcher LLP has provided contact information for legal assistance regarding recent developments in derivatives law. The firm encourages those with questions to reach out to their usual Gibson Dunn lawyer, any member of the firm’s Derivatives practice group, or the following practice leaders and authors:
Washington, D.C.:
* Jeffrey L. Steiner (202.887.3632, jsteiner@gibsondunn.com)
* Michael D. Bopp (202.955.8256, mbopp@gibsondunn.com)
* Stephanie L. brooker (202.887.3502, sbrooker@gibsondunn.com)
* David P. Burns (202.887.3786, dburns@gibsondunn.com)
* Karin Thrasher (202.887.3712, kthrasher@gibsondunn.com)
* Alice Yiqian Wang (202.777.9587, awang@gibsondunn.com – Note: Alice Wang is a law clerk and not admitted to practice law.)
London:
* Michelle M. Kirschner (+44 (0)20 7071.4212, mkirschner@gibsondunn.com)
New York:
* Darius Mehraban (212.351.2428,dmehraban@gibsondunn.com)
* Jason J. Cabral (212.351.6267,jcabral@gibsondunn.com)
* Adam Lapidus (212.351.3869, alapidus@gibsondunn.com)
* Marc Aaron Takagaki (212.351.4028, mtakagaki@gibsondunn.com)
Hong Kong:
* William R. Hallatt (+852 2214 3836, whallatt@gibsondunn.com)
Dallas:
* Hayden K. McGovern (214.698.3142, hmcgovern@gibsondunn.com)
Disclaimer: Gibson Dunn states that these materials are for general informational purposes only and do not constitute legal advice. The firm disclaims any liability related to the use of this information and emphasizes that sharing these materials does not create an attorney-client relationship. Readers are advised to seek advice from qualified counsel regarding specific legal issues, as facts and circumstances vary and past results do not guarantee similar outcomes.
For further information, please visit the Gibson Dunn & Crutcher website: https://www.gibsondunn.com/
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