Commodities, Futures & Derivatives

Looking Forward

With the finalization of a number of significant rules, especially relating to swap dealers and the long-awaited position limits rule, the CFTC’s focus will shift to ensuring compliance with, and enforcement of, those rules. Corporate compliance programs will be under heightened regulatory scrutiny, resulting in steeper penalties and undertakings. Notwithstanding the pandemic making remote surveillance more challenging, firms should proactively review existing practices to ensure full compliance with recently-issued advisories. We also anticipate the increased coordination between the CFTC and DOJ will result in a number of parallel civil and criminal proceedings, especially relating to anti-money laundering laws and cryptocurrencies. Our FinTech clients should pay close attention to potential registration requirements given increasing regulatory scrutiny in that area. Growing interest in Environmental, Social and Governance investment products and climate-related derivatives will also demand attention to transparent and enforceable metrics in product design and marketing.