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Derivatives, Legislative and Regulatory Weekly Update (July 5, 2024)

Derivatives, Legislative and Regulatory Weekly Update (July 5, 2024)
Gibson Dunn's lawyers bring you the latest in U.S. derivatives news from the past week.

Table of Contents

The latest developments in the derivatives market have been released by the CFTC, including the results of its fourth Supervisory Stress Test of derivatives clearing organization resources. The report concluded that these organizations hold sufficient resources to withstand extreme price shocks. In addition, the Supreme Court overruled Chevron v. Natural Resources Defense Council, limiting judicial deference to agencies’ statutory interpretation. The CFTC also announced a no-action letter regarding certain reporting requirements for swaps transitioning from CDOR to CORRA, and extended the public comment period for proposed amendments to event contracts rules. Furthermore, the CFTC granted ForecastEx, LLC DCO registration and DCM designation, and approved final capital comparability determinations for certain non-U.S. nonbank swap dealers. Outside the U.S., ESMA has put forward measures to support corporate sustainability reporting, and new MiCA rules have been introduced to increase transparency for retail investors. ISDA has proceeded with the development of an industry notices hub, and published a framework to prepare for the close out of derivatives contracts. The organization also responded to consultations on USD/INR FX options and liquidity preparedness for margin and collateral calls. These developments are crucial for industry professionals and stakeholders to stay informed and prepared. For more detailed analysis, readers are encouraged to refer to Gibson Dunn’s client alert.