US regulation for derivatives lawyers

What is the key US legislation affecting derivatives?

Following the 2008 financial crisis, the G20 group of countries reached an agreement to increase transparency and promote market integrity in the US banking system which led to the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) in 2010. Title VII of the Dodd-Frank Act provides a framework for the regulation of swap markets

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Latest Banking & Finance News

ISDA launches consultation on CDS auction lock-up agreements

The International Swaps and Derivatives Association (ISDA) has published a consultation paper proposing new solutions for handling lock-up agreements in Credit Default Swap (CDS) auctions. The proposal seeks to establish a uniform treatment of Locked Up Debt within CDS settlement processes—addressing issues related to market squeezes and auction timing. It responds to concerns about the disproportionate impact of Lock-Up Agreements on CDS settlements during restructuring and bankruptcy scenarios. Market participants are invited to submit feedback on the proposed solution by 8 August 2025 to Fred Quenzer, Senior Counsel, America, at fquenzer@isda.org.

ISSB consults on amendments to SASB Standards and IFRS S2 guidance

The International Sustainability Standards Board (ISSB) has published two exposure drafts proposing amendments to the Sustainability Accounting Standards Board (SASB) Standards and consequential amendments to the industry-based guidance on implementing International Financial Reporting Standard 2 (IFRS S2). The proposals include: (1) a comprehensive review of nine priority industries (all eight industries within the extractives and minerals processing sector and the processed foods industry); (2) metric alignments across 41 additional industries covering topics such as water management and workforce health and safety; and (3) updates to the IFRS 2 industry-based guidance to maintain alignment with climate-related content in the SASB standards. Final amendments are expected in 2026, subject to stakeholder feedback. Before the end of 2025, the ISSB will also publish exposure drafts for proposed enhancements to three further SASB Standards: electric utilities and power generators, and two standards in the food and beverage sector. It will consider an additional group of industries for prioritisation for future enhancements later in 2025.

FCA publishes CP25/20 on SI regime for bonds and derivatives and discussion paper on equity markets

The Financial Conduct Authority (FCA) has published consultation paper CP25/20 on the systematic internaliser (SI) regime for bonds and derivatives, alongside a discussion paper on equity markets. The consultation follows the removal of pre-trade transparency from SIs’ obligations in bonds and derivatives and seeks views on the future of that regime. The FCA aims to give effect to new SI rules in Q4 2025 and ensure continued alignment between the transparency and SI regimes. Responses are sought by 10 September 2025, with final rules expected in Q4 2025.

FCA launches beta version of new Handbook website

The Financial Conduct Authority FCA) has launched a new Handbook website, currently available in beta. The updated site retains the structure and content of the existing version but introduces features designed to make it easier for users to navigate and find information, understand connections between FCA rules and compare different versions of Handbook text to track changes over time. The beta site is available alongside the current Handbook, which will continue to be updated as normal. Users are advised to create a new account on the beta site to access features such as favouriting content and signing up for alerts. The FCA has stated that the beta phase will continue while testing and refinements are made, with full launch expected later in 2025.

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