Darius Mehraban

From the Derivatives Practice Group: This week, the CFTC filed an amicus brief in the Ninth Circuit that reaffirms its exclusive jurisdiction over prediction markets.~~New Developments~~CFTC Reaffirms Exclusive Jurisdiction over Prediction Markets in U.S. Circuit Court Filing. On February 17, the CFTC filed an amicus brief in the U.S. Circuit Court of Appeals for the Ninth Circuit confirming its exclusive jurisdiction over the U.S. commodity derivatives markets, including event contract markets commonly referred to as prediction markets. The brief was filed in North American Derivatives Exchange, Inc. et al v. The State of Nevada on relation of the Nevada Gaming Control Board et al. [NEW]~~CFTC Announces Innovation Advisory Committee Members. On February 12, the CFTC announced the members of the Innovation Advisory Committee (IAC). The committee will help the Commission keep pace with how breakthrough innovations, such as artificial intelligence and blockchain technologies, are transforming markets, enabling the agency to develop adaptive regulations and maintain robust financial oversight in a world where change is constant. Chairman Selig is the sponsor of this committee and nominated Michael Passalacqua as the committee’s designated federal officer. The full list of IAC members can be found here.~~CFTC Targets Relationship Investment Scams with National and International Initiatives this Valentine’s Week. On February 9, the CFTC’s Office of Customer Education and Outreach announced that it is leading national and international awareness efforts to warn the public about relationship investment scams, a form of fraud that costs Americans an estimated $10 billion each year. The national interagency DatingOrDefrauding? social media awareness campaign warns Americans to be skeptical of any requests from new online friends or romantic interests. The campaign highlights a common warning sign: requests to send crypto assets, or other forms of payment, to invest in scams through fake crypto websites.~~CFTC Staff Reissues Letter 25-40 Updating Payment Stablecoin Definition. On February 6, the CFTC’s Market Participants Division announced it has reissued CFTC Staff Letter 25-40 with a limited revision to the definition of “payment stablecoin.” This No-Action Position is with respect respect to futures commission merchants that accept certain non-securities digital assets as margin collateral and (a) take into account the value of such digital assets for purposes of certain regulatory requirements, subject to conditions or (b) deposit payment stablecoins as residual interest, subject to conditions. The CFTC’s revision specifies that a national trust bank may be a permitted issuer of a payment stablecoin for purposes of the no-action position.~~SEC Publishes Data on Exchange Traded Funds and Fund Mergers; Updated Statistics on Municipal Advisors, Transfer Agents, and Security-Based Swap Dealers. On February 5, the SEC’s Division of Economic and Risk Analysis (DERA) published two new reports on exchange traded funds and fund mergers, and updated statistics and data visualizations on municipal advisors, transfer agents, and security-based swap dealers. The reports provide the public with information about the growth in active ETFs and the changes in fees paid by investors when mutual funds and ETFs acquire other funds.~~New Developments Outside the U.S.~~ESMA Publishes Supervisory Briefing on the AAR Representativeness Obligation. On February 20, ESMA published a supervisory briefing on the representativeness obligation linked to the active account requirement (AAR). The briefing sets out ESMA’s supervisory expectations for how counterparties should comply with and report on the AAR representativeness obligation. According to ESMA, it also provides guidance and promotes supervisory convergence for the supervision of counterparties subject to the AAR. [NEW]~~ESMA Publishes List of Supplementary Deferrals for Sovereign Bonds. On February 19, ESMA and the National Competent Authorities (NCAs) have agreed that supplementary deferrals may be applied on top of the standard Markets in Financial Instruments Regulation deferral regime for sovereign bonds. ESMA and all NCAs, except the National Bank of Slovakia, have decided to allow the following supplementary deferrals: for trades of a medium size on liquid bonds in Group 1, the publication of the volume may be omitted until the end of the trading day. The supplementary deferrals should start applying on May 4, 2026. [NEW]~~ESMA Seeks Input to Streamline and Simplify its Market Abuse Guidelines. On February 19, ESMA launched a consultation proposing amendments to its Market Abuse Regulation guidelines on the delay in the disclosure of inside information. According to ESMA, the proposals will align the guidelines with the disclosure regime as amended by the Listing Act, ensuring issuers face fewer administrative burdens while benefiting from clearer requirements. [NEW]~~ESMA Announces Upcoming Changes to the Euribor Panel. On February 18, ESMA announced that it will issue a statement on the upcoming changes to the Euribor panel, in its capacity as supervisor of the European Money Market Institute (EMMI), administrator of Euribor. ESMA’s statement concerns the announcement by EMMI that Barclays Bank PLC will withdraw from the Euribor panel. The withdrawal will take effect on February 27, which will be the bank’s final day contributing input data to the benchmark determination. [NEW]~~ESMA Publishes Statement Supporting the Smooth Implementation of the Listing Act. On February 18, ESMA issued a statement with practical guidance to national competent authorities, issuers, and their advisors on the application of the revised prospectus framework introduced by the Listing Act. [NEW]~~ESMA Supports the Simplified European Sustainability Reporting Standards and Suggests Targeted Adjustments. On February 18, ESMA delivered its opinion on the draft revised European Sustainability Reporting Standards (ESRS) developed by the European Financial Reporting Advisory Group (EFRAG). ESMA stated that it strongly supports the European Commission’s goal of enhancing competitiveness and growth through simplification and burden reduction. On this basis, ESMA also stated that it welcomes EFRAG’s proposed changes to the ESRS and finds room for specific modifications. [NEW]~~ESMA Publishes Latest Edition of Spotlight on Markets Newsletter. On February 13, ESMA published its latest edition of the Spotlight on Markets Newsletter. This edition opens with ESMA’s Digital and Data Strategies, outlining ESMA’s position that enhanced data use and improved digital tools will strengthen effective and risk-based supervision. Other highlights include the launch of the selection process for the Consolidated Tape Provider for OTC derivatives, which ESMA stated is an important step toward greater post-trade transparency.~~ESMA to Hold Conference “A New Era for EU Capital Markets” on May 21, 2026. On February 5, ESMA announced that it is organizing a high‑level conference “A New Era for EU Capital Markets” on May 21, 2026 in Paris, France. The conference will bring together senior policymakers, regulators, leaders of major market infrastructures and financial institutions, as well as investor representatives. Discussions will focus on how to deepen market integration, strengthen supervision and improve the investor journey in support of the Savings and Investments Union.~~New Industry-Led Developments~~ISDA Publishes SwapsInfo Full Year 2025 and the Fourth Quarter of 2025 Review. On February 17, ISDA published a report noting that trading activity in interest rate derivatives (IRD) and credit derivatives increased in 2025, which ISDA said reflects shifting monetary policy expectations and broader market conditions. ISDA also found that IRD traded notional rose by about 46% year-on-year, led by an increase in overnight index swaps. Index credit derivatives also traded notional grew by more than 50%. [NEW]~~IOSCO Announces Pre-Valentine’s Day Campaign Focused on Combatting Relationship Investments Scams. On February 11, IOSCO announced the start of a worldwide initiative to raise awareness about relationship investment scams and the devastating effect they can have on an investor’s financial future. These scams are called various names, including romance scams, crypto investment scams, financial grooming scams, and “pig butchering” scams.~~ISDA Responds to Bank of England Consultation on Systemic Stablecoins. On February 10, ISDA responded to the Bank of England’s consultation on a proposed regulatory regime for sterling-denominated systemic stablecoins. In its response, ISDA highlighted its position that any regulatory framework should be assessed through the lens of prudent risk management and the Principles for Financial Market Infrastructures published by the Committee on Payments and Market Infrastructures and International Organization of Securities Commissions, with a particular focus on liquidity, credit risk, operational resilience and legal certainty. [NEW]~~ISDA Publishes Paper on IRRBB Management in Emerging Market and Developing Economies. On February 9, ISDA published a paper on interest rate risk in the banking book (IRRBB) in which it argues that building more effective IRRBB management frameworks supported by well-functioning interest rate derivatives markets is both a financial stability priority and a foundation for sustainable economic progress in emerging market and developing economies.~~ISDA and FIA Respond to CPMI-IOSCO Consultation on General Business Losses. On February 5, ISDA and the Futures Industry Association (FIA) responded to the Committee on Payments and Market Infrastructures (CPMI) and International Organization of Securities Commissions (IOSCO) consultation on the management of general business risks and general business losses by financial market infrastructures (FMIs). ISDA and FIA stated that they welcome the consultation’s emphasis that FMIs should maintain sufficient resources to bear general business losses for which they are solely responsible, given these losses stem from risks under FMI control and are not appropriately allocated to participants.~~ISDA Chief Executive Scott O’Malia Gives Remarks at Trading Book Capital Event. On February 5, Scott O’Malia gave welcoming remarks at ISDA’s Trading Book Capital event. In his remarks, O’Malia highlighted three priorities: (1) preserving the viability of Fundamental Review of the Trading Book internal models and improving current treatment of non-modellable risk factors, (2) mitigating market‑functioning strains, and (3) ensuring that the supplementary leverage ratio operates as a backstop after recent U.S. modifications.~~The following Gibson Dunn attorneys assisted in preparing this update: Jeffrey Steiner, Adam Lapidus, Karin Thrasher, and Alice Wang.~~Gibson Dunn’s lawyers are available to assist in addressing any questions you may have regarding these developments. Please contact the Gibson Dunn lawyer with whom you usually work, any member of the firm’s Derivatives practice group, or the following practice leaders and authors:~~Jeffrey L. Steiner, Washington, D.C. (202.887.3632, jsteiner@gibsondunn.com)~~Michael D. Bopp, Washington, D.C. (202.955.8256, mbopp@gibsondunn.com)~~Michelle M. Kirschner, London (+44 (0)20 7071.4212, mkirschner@gibsondunn.com)~~Darius Mehraban, New York (212.351.2428, dmehraban@gibsondunn.com)~~Jason J. Cabral, New York (212.351.6267, jcabral@gibsondunn.com)~~Adam Lapidus, New York (212.351.3869,  alapidus@gibsondunn.com )~~Stephanie L. Brooker, Washington, D.C. (202.887.3502, sbrooker@gibsondunn.com)~~William R. Hallatt, Hong Kong (+852 2214 3836, whallatt@gibsondunn.com )~~David P. Burns, Washington, D.C. (202.887.3786, dburns@gibsondunn.com)~~Marc Aaron Takagaki, New York (212.351.4028, mtakagaki@gibsondunn.com )~~Karin Thrasher, Washington, D.C. (202.887.3712, kthrasher@gibsondunn.com)~~Alice Yiqian Wang, Washington, D.C. (202.777.9587, awang@gibsondunn.com)~~© 2026 Gibson, Dunn & Crutcher LLP.  All rights reserved.  For contact and other information, please visit us at www.gibsondunn.com.~~Attorney Advertising: These materials were prepared for general informational purposes only based on information available at the time of publication and are not intended as, do not constitute, and should not be relied upon as, legal advice or a legal opinion on any specific facts or circumstances. Gibson Dunn (and its affiliates, attorneys, and employees) shall not have any liability in connection with any use of these materials.  The sharing of these materials does not establish an attorney-client relationship with the recipient and should not be relied upon as an alternative for advice from qualified counsel.  Please note that facts and circumstances may vary, and prior results do not guarantee a similar outcome.~~Download PDF~~

Feb 20

8 min

From the Derivatives Practice Group: This week, the CFTC reissued Staff Letter 25-40 with a limited revision to the definition of “payment stablecoin; the CFTC also withdrew its Notice of Proposed Rulemaking and its Staff Advisory on event contracts.~~New Developments~~CFTC Staff Reissues Letter 25-40 Updating Payment Stablecoin Definition. On February 6, the CFTC’s Market Participants Division announced it has reissued CFTC Staff Letter 25-40 with a limited revision to the definition of “payment stablecoin.” This No-Action Position is with respect respect to futures commission merchants that accept certain non-securities digital assets as margin collateral and (a) take into account the value of such digital assets for purposes of certain regulatory requirements, subject to conditions or (b) deposit payment stablecoins as residual interest, subject to conditions. The CFTC’s revision specifies that a national trust bank may be a permitted issuer of a payment stablecoin for purposes of the no-action position. [NEW]~~SEC Publishes Data on Exchange Traded Funds and Fund Mergers; Updated Statistics on Municipal Advisors, Transfer Agents, and Security-Based Swap Dealers. On February 5, the SEC’s Division of Economic and Risk Analysis (DERA) published two new reports on exchange traded funds and fund mergers, and updated statistics and data visualizations on municipal advisors, transfer agents, and security-based swap dealers. The reports provide the public with information about the growth in active ETFs and the changes in fees paid by investors when mutual funds and ETFs acquire other funds. [NEW]~~CFTC Withdraws Event Contracts Rule Proposal and Staff Sports Event Contracts Advisory. On February 4, the CFTC announced it has withdrawn the notice of proposed rulemaking titled “Event Contracts” that it published on June 10, 2024 (see CFTC Press Release No. 8907-24). The CFTC does not intend to issue final rules with respect to the proposal. Additionally, Commission staff has withdrawn CFTC Staff Letter 25-36, a Staff Advisory on Certain Contract Markets (see CFTC Press Release No. 9137-25). [NEW]~~CFTC Staff Issues Interpretation on Legacy Swap Status. On February 2, the CFTC’s Market Participants Division and Division of Clearing and Risk issued an interpretive letter addressing the effect of a merger conducted as part of an internal reorganization at Morgan Stanley, a CFTC-registered swap dealer, on the status of legacy swaps. Based on the facts and circumstances of the merger as described in the letter, the divisions concluded the swaps at issue retain their legacy swap status under the Commission’s uncleared swap margin and swap clearing requirements. [NEW]~~CFTC Designates Xchange Alpha LLC as a Contract Market. On February 2, the CFTC announced it has issued an order designating Xchange Alpha LLC as a designated contract market (DCM) under Section 5 of the Commodity Exchange Act (CEA). The CFTC determined Xchange Alpha demonstrated its ability to comply with the CEA and CFTC regulations applicable to DCMs. The terms and conditions of the designation order require, among other things, Xchange Alpha to comply with all applicable provisions of the CEA and the CFTC regulations applicable to DCMs. [NEW]~~CFTC and SEC Hold Joint Event on Harmonization, U.S. Financial Leadership in the Crypto Era. On January 29, the CFTC and the SEC held a joint event at CFTC headquarters to discuss harmonization between the two agencies and their efforts to deliver on President Trump’s promise to make the U.S. the crypto capital of the world. During the event, Chairman Selig provided his first public remarks since joining the Commission.~~CFTC Chairman Offers First Public Remarks as CFTC Chairman. On January 29, CFTC Chairman Michael S. Selig offered his first public remarks as CFTC Chairman at the CFTC-SEC Joint Event on Harmonization “U.S. Financial Leadership in the Crypto Era.” During his remarks, Chairman Selig announced that the CFTC is partnering with the SEC on Project Crypto to “advance a clear crypto asset taxonomy, clarify jurisdictional lines, remove duplicative compliance requirements, and reduce regulatory fragmentation.” Chairman Selig specifically discussed priorities including expanding eligible tokenized collateral, creating onshore pathways for perpetual derivatives, and facilitating permissionless innovation. Additionally, Chairman Selig said that he has directed CFTC staff to draft rules to foster leveraged, margined, and financed trading, both on- and off-exchange and explore the creation of a new category of DCM registration that is tailored specifically to retail leveraged, margined, or financed crypto asset trading. He also committed to working closely with the SEC to identify opportunities to better align regulatory requirements across markets and examine whether substituted compliance can achieve equivalent or better regulatory outcomes at lower costs for market participants. With respect to prediction markets, or “event contracts,” Chairman Selig highlighted his recent actions directing CFTC staff to (1) withdraw the 2024 event contracts rule proposal prohibiting political and sports-related event contracts and the cautionary 2025 staff advisory regarding access to sports-related event contracts, (2) move forward with drafting an event contracts rulemaking, (3) reassess the Commission’s participation in currently pending litigation with an eye toward defending its exclusive jurisdiction over commodity derivatives, and (4) work with SEC counterparts to develop a joint interpretation on Title VII definitions intended to draw a clearer line between certain commodity and security options, CFTC-regulated swaps, and SEC-regulated security-based swaps.~~CFTC Announces Tyler S. Badgley as General Counsel. On January 28, the CFTC announced that Tyler S. Badgley has been named the agency’s General Counsel. Badgley comes to the CFTC from the U.S. Department of the Treasury, where he served as the Deputy General Counsel and, previously, Executive Secretary. Prior to his time at Treasury, he was Senior Counsel at the U.S. Chamber of Commerce Litigation Center.~~CFTC Staff Issues No-Action Letter, Announces Implementation Updates to 2024 Large Trader Reporting Rule. On January 27, the CFTC’s Division of Market Oversight (DMO) announced it has taken a no-action position regarding the compliance date for the Part 17 large trader reporting final rule in response to a request from the Futures Industry Association. DMO will not recommend the Commission take enforcement action against futures commission merchants, clearing members, foreign brokers, or designated contract markets for failure to comply with the 2024 Part 17 large trader reporting final rule. The no-action relief will extend for 18 months after CFTC staff execute the actions referenced below.~~CFTC Chairman Selig Announces Alex Titus as Chief Advisor. On January 26, Chairman Selig announced Alex Titus as Chief Advisor to the Chairman. Titus joins the CFTC after serving as Chief of Staff at the White House Council of Economic Advisers under Chairman Stephen Miran and Acting Chairman Pierre Yared.~~Chairman Selig to Sponsor the CFTC’s Agricultural Advisory Committee. On January 23, Chairman Selig announced that he will sponsor the CFTC’s Agricultural Advisory Committee (AAC). The CFTC is seeking nominations to fill current vacancies on the AAC. Submissions must be received by February 18.~~New Developments Outside the U.S.~~ESMA to Hold Conference “A New Era for EU Capital Markets” on May 21, 2026. On February 5, ESMA announced that it is organizing a high‑level conference “A New Era for EU Capital Markets” on May 21, 2026 in Paris, France. The conference will bring together senior policymakers, regulators, leaders of major market infrastructures and financial institutions, as well as investor representatives. Discussions will focus on how to deepen market integration, strengthen supervision and improve the investor journey in support of the Savings and Investments Union. [NEW]~~ESMA Launches Selection Process for its Next Chair. On February 3, ESMA launched the selection procedure for the position of ESMA Chair. This key leadership role offers the opportunity to shape the future of Europe’s financial markets and steer the organization through an evolving regulatory and supervisory landscape. [NEW]~~ESMA Signs Memorandum of Understanding with the Reserve Bank of India. On January 27, ESMA signed a Memorandum of Understanding with the Reserve Bank of India (RBI) to facilitate cooperation and exchange of information for the recognition of central counterparties established in India and supervised by RBI. This agreement marks a significant step towards restoring access for EU clearing members to Indian central counterparties and follows two years of sustained engagement between ESMA and RBI.~~New Industry-Led Developments~~ISDA Chief Executive Scott O’Malia Gives Remarks at Trading Book Capital Event. On February 5, Scott O’Malia gave welcoming remarks at ISDA’s Trading Book Capital event. In his remarks, O’Malia highlighted three priorities: (1) preserving the viability of Fundamental Review of the Trading Book internal models and improving current treatment of non-modellable risk factors, (2) mitigating market‑functioning strains, and (3) ensuring that the supplementary leverage ratio operates as a backstop after recent U.S. modifications. [NEW]~~ISDA Responds to RBI Unique Transaction Identifier Proposals. On February 3, ISDA submitted comments to a Draft Circular from the Reserve Bank of India (RBI) proposing to mandate the global Unique Transaction Identifier for all transactions in OTC markets for Rupee interest rate derivatives, forward contracts in Government securities, foreign currency derivatives, foreign currency interest rate derivatives, and credit derivatives in India. [NEW]~~ISDA Publishes Paper on How and Why Pension Funds Use Derivatives. On February 2, ISDA published a paper that it said reviews how and why pension funds use derivatives. It also reviews the global regulatory landscape that shapes derivatives use and highlights the role ISDA plays in helping pension funds navigate these markets. [NEW]~~ISDA Publishes Paper on Climate Risk Scenario Analysis for the Trading Book: Phase 4. On January 29, ISDA published a paper that it said reviews, from a trading book perspective, the short-term scenarios recently published by the Network of Central Banks and Supervisors for Greening the Financial System (NGFS). ISDA also noted that the paper provides a set of market risk shocks consistent with two of those NGFS scenarios.~~ISDA Publishes Paper on the Development of a Safe and Efficient OTC Commodity Derivatives Market in India. On January 27, ISDA published a white paper that it said explores the case for broadened the use of over-the-counter (OTC) commodity derivatives in India and considers the necessary steps to make this a reality. ISDA indicated its belief that the development of a robust and liquid OTC commodity derivatives market in India could support the continued growth of India’s economy given its significant reliance on commodities.~~ISDA Publishes Note on Key Trends in the Size and Composition of OTC Derivatives Markets in the First Half of 2025. On January 22, ISDA published a research note on the latest data from the Bank for International Settlements (BIS) over-the-counter (OTC) derivatives statistics, which showed an increase in notional outstanding of OTC derivatives during the first half of 2025 compared to the first half of 2024. Notional outstanding rose across all major asset classes, including interest rate derivatives, foreign exchange, and equity and commodity derivatives.~~ISDA Responds to ESMA on CCP Participation Requirements. On January 6, ISDA responded to a consultation from ESMA on central counterparty (CCP) participation requirements. ISDA maintained that participation requirements for CCPs are vital for safe and efficient clearing markets, and ISDA broadly supported ESMA’s consultation and proposed regulatory technical standards. ISDA stated that it welcomes the inclusion of sponsored models with clear responsibilities and contingency measures, as well as proposals addressing mutualization risks.~~The following Gibson Dunn attorneys assisted in preparing this update: Jeffrey Steiner, Adam Lapidus, Karin Thrasher, and Alice Wang.~~Gibson Dunn’s lawyers are available to assist in addressing any questions you may have regarding these developments. Please contact the Gibson Dunn lawyer with whom you usually work, any member of the firm’s Derivatives practice group, or the following practice leaders and authors:~~Jeffrey L. Steiner, Washington, D.C. (202.887.3632, jsteiner@gibsondunn.com)~~Michael D. Bopp, Washington, D.C. (202.955.8256, mbopp@gibsondunn.com)~~Michelle M. Kirschner, London (+44 (0)20 7071.4212, mkirschner@gibsondunn.com)~~Darius Mehraban, New York (212.351.2428, dmehraban@gibsondunn.com)~~Jason J. Cabral, New York (212.351.6267, jcabral@gibsondunn.com)~~Adam Lapidus, New York (212.351.3869,  alapidus@gibsondunn.com )~~Stephanie L. Brooker, Washington, D.C. (202.887.3502, sbrooker@gibsondunn.com)~~William R. Hallatt, Hong Kong (+852 2214 3836, whallatt@gibsondunn.com )~~David P. Burns, Washington, D.C. (202.887.3786, dburns@gibsondunn.com)~~Marc Aaron Takagaki, New York (212.351.4028, mtakagaki@gibsondunn.com )~~Karin Thrasher, Washington, D.C. (202.887.3712, kthrasher@gibsondunn.com)~~Alice Yiqian Wang, Washington, D.C. (202.777.9587, awang@gibsondunn.com)~~© 2026 Gibson, Dunn & Crutcher LLP.  All rights reserved.  For contact and other information, please visit us at www.gibsondunn.com.~~Attorney Advertising: These materials were prepared for general informational purposes only based on information available at the time of publication and are not intended as, do not constitute, and should not be relied upon as, legal advice or a legal opinion on any specific facts or circumstances. Gibson Dunn (and its affiliates, attorneys, and employees) shall not have any liability in connection with any use of these materials.  The sharing of these materials does not establish an attorney-client relationship with the recipient and should not be relied upon as an alternative for advice from qualified counsel.  Please note that facts and circumstances may vary, and prior results do not guarantee a similar outcome.~~Download PDF~~

Feb 6

9 min

Gibson Dunn’s market-leading Fund Finance & Structured Capital team participated in panel discussions and contributed to conversations on the evolution of fund finance and private credit markets.~~The Fund Finance Association held its 15th Annual Global Fund Finance Symposium on February 2–4, 2026, in Miami, bringing together nearly 3,000 professionals from across the fund finance market, including fund managers, lenders, investors, and lawyers. As a platinum sponsor of the event, Gibson Dunn’s market-leading Fund Finance & Structured Capital team participated in panel discussions and contributed to conversations on the evolution of fund finance and private credit markets. Below is a summary of our key takeaways from the symposium and our outlook for fund finance in 2026.~~Market Outlook~~We anticipate another year of significant growth and innovation in the fund finance industry, with sponsors and lenders drawing on an increasingly diverse set of financing structures and liquidity solutions to meet their strategic objectives. Both NAV facilities and subscription lines will remain widely used, as the market continues to accommodate lenders with varying risk profiles—from those favoring the relative security of unfunded capital commitments to those comfortable lending against portfolio assets—and as funds invest across an increasingly broad range of asset classes. We also anticipate continued innovation in deal structures, including an increase in hybrid facilities, greater use of securitizations and rated structures, and more frequent tranching of debt into different classes to accommodate varied investor preferences.~~The Proliferation of NAV Financing~~Net asset value (NAV) financings have become a well-established liquidity tool for fund sponsors, and this growth is expected to continue throughout 2026. Sponsors are increasingly utilizing NAV-based solutions to support existing portfolio investments, pursue new opportunities, enhance net returns, and refinance maturing subscription lines. NAV facilities have also become particularly important for evergreen fund structures, where traditional subscription facilities may be unavailable due to the absence of unfunded capital commitments and the presence of investor redemption features. We are also seeing increased use of NAV and hybrid financing solutions for separately managed accounts (SMAs) and continuation vehicles. We expect to see additional non-bank lenders entering the market and offering liquidity solutions, as fund managers themselves increasingly become providers of fund finance products.~~Investor attitudes toward NAV financing have evolved considerably. Transparency, market education, and ILPA guidance have helped normalize NAV financing across strategies. Looking ahead, we expect to see the use of NAV and hybrid facilities continue to accelerate, driven by growing investor acceptance and the increasing participation of private credit funds and insurance companies as lenders in these transactions.~~Continuation Vehicles as a Liquidity Management Tool~~Continuation vehicle (CV) transactions represent a significant volume of GP-led secondary transactions, accounting for approximately 50% of the market in 2025. A CV gives investors in an existing fund the opportunity to invest in a new fund with one or more of the existing fund’s assets, rather than requiring an exit or liquidity event. The uptake has been accelerated by a challenging M&A environment and depressed exit returns, as well as growing recognition that a typical four-to-six-year investment period may not provide sufficient time to fully realize value from a fund’s asset or assets.~~CVs represent a structural shift: fund managers have grown comfortable with the idea that they need not sell investments in a sponsor-to-sponsor transaction to extract value. Instead, utilizing a CV can drive the next wave of growth and investment in an asset while also providing existing fund investors with an option for liquidity. Financings for CVs are often structured as hybrid facilities, involving subscription facility components along with enhanced covenants such as asset coverage ratios and security over distributions from the underlying asset or assets.~~The Growth of GP Financings~~GP-level financings have become a well-established and growing segment of the fund finance market, with continued expansion expected in 2026 across sponsors of all sizes. These facilities allow general partners to address working capital needs and manage capital allocation by borrowing against predictable revenue streams. Lenders are developing customized financing solutions that may segment different income streams—such as management fees, performance-based compensation, and GP commitment obligations—into distinct tranches with tailored terms. As GP balance sheets become more sophisticated and capital needs more varied, we expect continued product innovation in this space.~~Back-Leverage and Single-Asset Financing~~Back-leverage transactions and single-asset financing solutions are gaining significant traction in the fund finance market. These structures allow sponsors to obtain financing at the asset level, often serving as interim capital ahead of a planned exit or to fund additional investment in a particular portfolio company. As sponsors seek more targeted liquidity solutions that do not require fund-level borrowing, back-leverage facilities offer flexibility and can be structured to align with specific asset timelines and value creation plans.~~Rise of Insurance Capital and Private Wealth Investors~~The influence of insurance companies in the fund finance space is likely to continue growing as insurers seek exposure to alternative investments. As lenders, insurance companies’ long-duration capital allows them to offer more dynamic and flexible structuring options, access to alternative pools of capital, and potential pricing advantages for borrowers.~~This past year also saw an increase in private wealth and family office investors, with general partners developing products tailored to individual investors. We expect the “retail-ization” of alternative investments to become an increasing focus as fund managers adopt new technologies to capture retail capital and “Defined Contribution” dollars as the 401(k) industry opens up to allocations in alternative investments.~~Increased Use of Structured Products and Ratings~~There has been a notable increase in rated note feeder (RNF) and collateralized fund obligation (CFO) transactions as insurers and fixed income investors seek exposure to private capital and more sponsors utilize these structures as fundraising and balance sheet tools. KBRA reported a record year in 2025 for CFO transactions, representing $26.2 billion across more than 20 transactions.~~The recent expansion of CFO and RNF structured products is partially driven by increased involvement of rating agencies. The rating process brings discipline, greater standardization, and transparency, which in turn bolsters investor confidence. Investment grade outcomes depend heavily on leverage levels, diversification, and manager quality. CFO and RNF products offer flexible structuring, varied risk profiles, exposure to diverse assets, and predictable cash flows—making them attractive to a range of investors. Notably, the CFO transaction is perhaps better understood as a hybrid between a fundraising tool and a GP liquidity solution. As these products mature, they are transitioning from novel structures to established components of the fund finance toolkit. We also anticipate that the use of ratings will expand beyond NAV and CFO transactions to include a wider array of fund finance products, opening access to new pools of institutional capital.~~Looking Ahead~~The symposium provided a valuable opportunity to connect with colleagues, clients, and key players across the fund finance ecosystem. The prevailing sentiment reflected optimism about the fund finance market and the outlook for 2026. We expect continued growth and evolution of financing and fund structures, with expanded use cases for NAV financing, structured capital products, and other strategic liquidity solutions. Gibson Dunn’s Fund Finance & Structured Capital team looks forward to working with clients as they navigate these developments.~~The following Gibson Dunn lawyers prepared this update: Duncan McKay, Darius Mehraban, Ryan Kim, Sarah Lefsky, Aja Sanneh, Alin Potra, Lettie Rose, Claire Griffet, and Sonari Chidi.~~Gibson Dunn’s lawyers are available to assist with any questions you may have regarding the issues and considerations discussed above. Please contact the Gibson Dunn lawyer with whom you usually work, any leader or member of the firm’s Investment Funds practice group or the Fund Finance team:~~Duncan K. R. McKay – Head of Fund Finance, New York, (+1 212.351.2603, dmckay@gibsondunn.com)~~Darius Mehraban – New York (+1 212.351.2428, dmehraban@gibsondunn.com)~~Ryan Kim – New York (+1 212.351.4002, rkim@gibsondunn.com)~~Sarah Lefsky – New York (+1 332.253.7717, slefsky@gibsondunn.com)~~Aja Sanneh – New York (+1 212.351.2382, asanneh@gibsondunn.com)~~Alin Potra – New York (+1 332.253.7725, apotra@gibsondunn.com)~~Lettie C. Rose – New York (+1 332.253.7728, rose@gibsondunn.com)~~Claire Griffet – New York (+1 332.253.7609, cgriffet@gibsondunn.com)~~Sonari Chidi – Los Angeles (+1 213.229.7270, schidi@gibsondunn.com)~~© 2026 Gibson, Dunn & Crutcher LLP.  All rights reserved.  For contact and other information, please visit us at www.gibsondunn.com.~~Attorney Advertising: These materials were prepared for general informational purposes only based on information available at the time of publication and are not intended as, do not constitute, and should not be relied upon as, legal advice or a legal opinion on any specific facts or circumstances. Gibson Dunn (and its affiliates, attorneys, and employees) shall not have any liability in connection with any use of these materials.  The sharing of these materials does not establish an attorney-client relationship with the recipient and should not be relied upon as an alternative for advice from qualified counsel.  Please note that facts and circumstances may vary, and prior results do not guarantee a similar outcome.~~Download PDF~~

Feb 19

6 min

From the Derivatives Practice Group: This week, the CFTC reissued Staff Letter 25-50 to add an additional no-action position regarding CPO delegation arrangements.~~New Developments~~CFTC Staff Reissues Staff Letter 25-50 to Add Additional No-Action Position on CPO Delegation Arrangements. On February 26, the CFTC’s Market Participants Division reissued CFTC Staff Letter 25-50 to add an additional no-action position in relation to the interaction between Letter 25-50 and CFTC Staff Letter 14-126, regarding certain delegation arrangements between commodity pool operators. [NEW]~~CFTC Enforcement Division Issues Prediction Markets Advisory. On February 25, the CFTC’s Division of Enforcement issued an advisory following public release of two enforcement cases involving traders’ misuse of nonpublic information and fraud with respect to certain prediction markets. Please see Gibson Dunn’s upcoming alert on this issue for more information. [NEW]~~CFTC Chairman Selig Announces Senior Staff Appointments. On February 23, CFTC Chairman Michael S. Selig announced four senior staff appointments in his office. The four appointments are: Brooke Nethercott as Director, Office of Public Affairs; Emma Johnston as Senior Agriculture Advisor; Meghan Tente as Senior Advisor; and Elizabeth (Libby) Mastrogiacomo as Senior Advisor. [NEW]~~CFTC Reaffirms Exclusive Jurisdiction over Prediction Markets in U.S. Circuit Court Filing. On February 17, the CFTC filed an amicus brief in the U.S. Circuit Court of Appeals for the Ninth Circuit confirming its exclusive jurisdiction over the U.S. commodity derivatives markets, including event contract markets commonly referred to as prediction markets. The brief was filed in North American Derivatives Exchange, Inc. et al v. The State of Nevada on relation of the Nevada Gaming Control Board et al.~~New Developments Outside the U.S.~~ESMA Publishes the Results of the Annual Transparency Calculations for Equity and Equity-like Instruments. On February 27, ESMA published the results of the annual transparency calculations for equity and equity-like instruments, which will apply from April 6, 2026. The full list of assessed equity and equity-like instruments is available through ESMA’s FITRS in the XML files with publication date from 27 February 2026 (see here) and through the Register web interface (see here). [NEW]~~ESMA Issues a Supervisory Briefing on Algorithmic Trading. On February 26, ESMA published a supervisory briefing to support consistent supervision of algorithmic trading across the EU. As ESMA states, the briefing provides National Competent Authorities with practical tools and clarified expectations for supervising firms engaged in algorithmic trading under MiFID II. It focuses on key areas where supervisory practices have diverged, including pre-trade controls, governance arrangements, testing frameworks and outsourcing of algorithmic trading systems. [NEW]~~ESMA Consults on Post-trade Risk Reduction Services Under EMIR 3. On February 26, ESMA launched a consultation on the requirements for how post-trade risk reduction (PTRR) services can benefit from the conditioned exemption from the clearing obligation introduced under the European Market Infrastructure Regulation (EMIR 3). ESMA is seeking feedback on several elements of the framework for the PTRR service providers to operate under the exemption, including transparency towards participants, algorithm safeguards, execution of PTRR exercises, controls to be performed and record keeping. [NEW]~~ESMA Sets Out Clearing Thresholds Under EMIR 3. On February 25, ESMA published its draft Regulatory Technical Standards setting out new and revised clearing thresholds under EMIR 3. The proposed thresholds ensure continuity in the coverage of systemic risk in over‑the‑counter derivative markets while avoiding unnecessary complexity and additional compliance burdens for market participants. [NEW]~~EBA and ESMA Consult on Revised Suitability Assessment Requirements for Banks and Investment Firms. On February 25, European Banking Authority (EBA) and ESMA launched a consultation on the revised joint guidelines on the assessment of the suitability of members of the management body and key function holders. The revised guidelines form part of a broader package designed to harmonise suitability assessments and ensure supervisory convergence across the EU. The consultation runs until May 25, 2026. [NEW]~~ESMA Reminds Firms of Their Obligations under CFD Product Intervention Measures Amid Rising Offerings of Perpetual Futures. On February 24, ESMA issued a statement reminding firms of their obligation to assess whether newly offered products fall within the scope of existing product intervention measures on contracts for differences. ESMA states that this statement responds to the increased offering of derivatives, often marketed as perpetual futures or perpetual contracts, that provide leveraged exposure to underlying values, including crypto-assets such as Bitcoin. [NEW]~~ESMA Consults on Guarantees as CCP Collateral and on Certain Aspects of CCP Investment Policy. On February 23, ESMA launched a public consultation following the review of the European Market Infrastructure Regulation (EMIR 3). ESMA is encouraging all interested stakeholders, including non-financial counterparties (NFCs), to share their views about: the relevant conditions under which public guarantees, public bank guarantees and commercial bank guarantees may be accepted by central counterparties (CCPs) as collateral; the conditions under which debt instruments can be considered as eligible financial instruments for the purpose of CCP investment policy; and the highly secured arrangements in which emission allowances posted as margins or default fund contributions can be deposited. [NEW]~~ESMA Simplifies MiFID II/ MiFIR Obligations on Market Data. On February 23, ESMA withdrew its guidelines on the Markets in Financial Instruments Directive (MiFID II) and Markets in Financial Instruments Regulation (MiFIR) obligations on market data, effective immediately, which it states reflected its ongoing commitment to simplifying rules and reducing unnecessary compliance burdens for market participants. ESMA stated that this decision aligns the framework with the newly applicable regulatory technical standards on the obligation to make market data available to the public on a reasonable commercial basis. [NEW]~~ESMA Publishes Supervisory Briefing on the AAR Representativeness Obligation. On February 20, ESMA published a supervisory briefing on the representativeness obligation linked to the active account requirement (AAR). The briefing sets out ESMA’s supervisory expectations for how counterparties should comply with and report on the AAR representativeness obligation. According to ESMA, it also provides guidance and promotes supervisory convergence for the supervision of counterparties subject to the AAR.~~ESMA Publishes List of Supplementary Deferrals for Sovereign Bonds. On February 19, ESMA and the National Competent Authorities (NCAs) have agreed that supplementary deferrals may be applied on top of the standard Markets in Financial Instruments Regulation deferral regime for sovereign bonds. ESMA and all NCAs, except the National Bank of Slovakia, have decided to allow the following supplementary deferrals: for trades of a medium size on liquid bonds in Group 1, the publication of the volume may be omitted until the end of the trading day. The supplementary deferrals should start applying on May 4, 2026.~~ESMA Seeks Input to Streamline and Simplify its Market Abuse Guidelines. On February 19, ESMA launched a consultation proposing amendments to its Market Abuse Regulation guidelines on the delay in the disclosure of inside information. According to ESMA, the proposals will align the guidelines with the disclosure regime as amended by the Listing Act, ensuring issuers face fewer administrative burdens while benefiting from clearer requirements.~~New Industry-Led Developments~~ISDA Issues Joint Letter on Italian 2026 Budget Law. On February 24, ISDA, the Association for Financial Markets in Europe and the International Securities Lending Association jointly sent a letter to the Italian tax authorities about changes to withholding tax on dividends made in the 2026 budget law, which limits access to the reduced 1.2% withholding tax rate on outbound dividends declared after January 1, 2026. The associations request urgent clarification on how to calculate and apply the new rules, especially in scenarios like securities lending, collateral and derivatives hedging. [NEW]~~ISDA Issues Joint Response to FRB Consultation on Stress Testing Framework. On February 23, ISDA, the Bank Policy Institute, the American Bankers Association, the Financial Services Forum, the Securities Industry and Financial Markets Association and the US Chamber of Commerce jointly responded to the US Federal Reserve’s consultation on the stress testing framework. The associations stated that they welcomed the Federal Reserve’s proposal to open its stress testing framework to public comment, which is a meaningful step toward greater transparency and objectivity. [NEW]~~ISDA Responds to FCA Consultation on Improving the UK MIFIR Transaction Reporting Regime. On February 20, ISDA responded to the Financial Conduct Authority’s consultation on improving the UK Markets in Financial Instruments Regulation (MIFIR) transaction reporting regime. ISDA argues against the introduction of conditional single-sided reporting and proposes that the unique product identifier replaces the international securities identification number as the over-the-counter derivatives identifier. [NEW]~~ISDA Publishes SwapsInfo Full Year 2025 and the Fourth Quarter of 2025 Review. On February 17, ISDA published a report noting that trading activity in interest rate derivatives (IRD) and credit derivatives increased in 2025, which ISDA said reflects shifting monetary policy expectations and broader market conditions. ISDA also found that IRD traded notional rose by about 46% year-on-year, led by an increase in overnight index swaps. Index credit derivatives also traded notional grew by more than 50%.~~The following Gibson Dunn attorneys assisted in preparing this update: Jeffrey Steiner, Adam Lapidus, Karin Thrasher, and Alice Wang.~~Gibson Dunn’s lawyers are available to assist in addressing any questions you may have regarding these developments. Please contact the Gibson Dunn lawyer with whom you usually work, any member of the firm’s Derivatives practice group, or the following practice leaders and authors:~~Jeffrey L. Steiner, Washington, D.C. (202.887.3632, jsteiner@gibsondunn.com)~~Michael D. Bopp, Washington, D.C. (202.955.8256, mbopp@gibsondunn.com)~~Michelle M. Kirschner, London (+44 (0)20 7071.4212, mkirschner@gibsondunn.com)~~Darius Mehraban, New York (212.351.2428, dmehraban@gibsondunn.com)~~Jason J. Cabral, New York (212.351.6267, jcabral@gibsondunn.com)~~Adam Lapidus, New York (212.351.3869,  alapidus@gibsondunn.com )~~Stephanie L. Brooker, Washington, D.C. (202.887.3502, sbrooker@gibsondunn.com)~~William R. Hallatt, Hong Kong (+852 2214 3836, whallatt@gibsondunn.com )~~David P. Burns, Washington, D.C. (202.887.3786, dburns@gibsondunn.com)~~Marc Aaron Takagaki, New York (212.351.4028, mtakagaki@gibsondunn.com )~~Karin Thrasher, Washington, D.C. (202.887.3712, kthrasher@gibsondunn.com)~~Alice Yiqian Wang, Washington, D.C. (202.777.9587, awang@gibsondunn.com)~~© 2026 Gibson, Dunn & Crutcher LLP.  All rights reserved.  For contact and other information, please visit us at www.gibsondunn.com.~~Attorney Advertising: These materials were prepared for general informational purposes only based on information available at the time of publication and are not intended as, do not constitute, and should not be relied upon as, legal advice or a legal opinion on any specific facts or circumstances. Gibson Dunn (and its affiliates, attorneys, and employees) shall not have any liability in connection with any use of these materials.  The sharing of these materials does not establish an attorney-client relationship with the recipient and should not be relied upon as an alternative for advice from qualified counsel.  Please note that facts and circumstances may vary, and prior results do not guarantee a similar outcome.~~Download PDF~~

Feb 27

8 min

From the Derivatives Practice Group: This week, the CFTC announced new members of the Innovation Advisory Committee.~~New Developments~~CFTC Announces Innovation Advisory Committee Members. On February 12, the CFTC announced the members of the Innovation Advisory Committee (IAC). The committee will help the Commission keep pace with how breakthrough innovations, such as artificial intelligence and blockchain technologies, are transforming markets, enabling the agency to develop adaptive regulations and maintain robust financial oversight in a world where change is constant. Chairman Selig is the sponsor of this committee and nominated Michael Passalacqua as the committee’s designated federal officer. The full list of IAC members can be found here. [NEW]~~CFTC Targets Relationship Investment Scams with National and International Initiatives this Valentine’s Week. On February 9, the CFTC’s Office of Customer Education and Outreach announced that it is leading national and international awareness efforts to warn the public about relationship investment scams, a form of fraud that costs Americans an estimated $10 billion each year. The national interagency DatingOrDefrauding? social media awareness campaign warns Americans to be skeptical of any requests from new online friends or romantic interests. The campaign highlights a common warning sign: requests to send crypto assets, or other forms of payment, to invest in scams through fake crypto websites. [NEW]~~CFTC Staff Reissues Letter 25-40 Updating Payment Stablecoin Definition. On February 6, the CFTC’s Market Participants Division announced it has reissued CFTC Staff Letter 25-40 with a limited revision to the definition of “payment stablecoin.” This No-Action Position is with respect respect to futures commission merchants that accept certain non-securities digital assets as margin collateral and (a) take into account the value of such digital assets for purposes of certain regulatory requirements, subject to conditions or (b) deposit payment stablecoins as residual interest, subject to conditions. The CFTC’s revision specifies that a national trust bank may be a permitted issuer of a payment stablecoin for purposes of the no-action position.~~SEC Publishes Data on Exchange Traded Funds and Fund Mergers; Updated Statistics on Municipal Advisors, Transfer Agents, and Security-Based Swap Dealers. On February 5, the SEC’s Division of Economic and Risk Analysis (DERA) published two new reports on exchange traded funds and fund mergers, and updated statistics and data visualizations on municipal advisors, transfer agents, and security-based swap dealers. The reports provide the public with information about the growth in active ETFs and the changes in fees paid by investors when mutual funds and ETFs acquire other funds.~~CFTC Withdraws Event Contracts Rule Proposal and Staff Sports Event Contracts Advisory. On February 4, the CFTC announced it has withdrawn the notice of proposed rulemaking titled “Event Contracts” that it published on June 10, 2024 (see CFTC Press Release No. 8907-24). The CFTC does not intend to issue final rules with respect to the proposal. Additionally, Commission staff has withdrawn CFTC Staff Letter 25-36, a Staff Advisory on Certain Contract Markets (see CFTC Press Release No. 9137-25).~~CFTC Staff Issues Interpretation on Legacy Swap Status. On February 2, the CFTC’s Market Participants Division and Division of Clearing and Risk issued an interpretive letter addressing the effect of a merger conducted as part of an internal reorganization at Morgan Stanley, a CFTC-registered swap dealer, on the status of legacy swaps. Based on the facts and circumstances of the merger as described in the letter, the divisions concluded the swaps at issue retain their legacy swap status under the Commission’s uncleared swap margin and swap clearing requirements.~~CFTC Designates Xchange Alpha LLC as a Contract Market. On February 2, the CFTC announced it has issued an order designating Xchange Alpha LLC as a designated contract market (DCM) under Section 5 of the Commodity Exchange Act (CEA). The CFTC determined Xchange Alpha demonstrated its ability to comply with the CEA and CFTC regulations applicable to DCMs. The terms and conditions of the designation order require, among other things, Xchange Alpha to comply with all applicable provisions of the CEA and the CFTC regulations applicable to DCMs.~~New Developments Outside the U.S.~~ESMA Publishes Latest Edition of Spotlight on Markets Newsletter. On February 13, ESMA published its latest edition of the Spotlight on Markets Newsletter. This edition opens with ESMA’s Digital and Data Strategies, outlining ESMA’s position that enhanced data use and improved digital tools will strengthen effective and risk-based supervision. Other highlights include the launch of the selection process for the Consolidated Tape Provider for OTC derivatives, which ESMA stated is an important step toward greater post-trade transparency. [NEW]~~ESMA to Hold Conference “A New Era for EU Capital Markets” on May 21, 2026. On February 5, ESMA announced that it is organizing a high‑level conference “A New Era for EU Capital Markets” on May 21, 2026 in Paris, France. The conference will bring together senior policymakers, regulators, leaders of major market infrastructures and financial institutions, as well as investor representatives. Discussions will focus on how to deepen market integration, strengthen supervision and improve the investor journey in support of the Savings and Investments Union.~~ESMA Launches Selection Process for its Next Chair. On February 3, ESMA launched the selection procedure for the position of ESMA Chair. This key leadership role offers the opportunity to shape the future of Europe’s financial markets and steer the organization through an evolving regulatory and supervisory landscape.~~New Industry-Led Developments~~IOSCO Announces Pre-Valentine’s Day Campaign Focused on Combatting Relationship Investments Scams. On February 11, IOSCO announced the start of a worldwide initiative to raise awareness about relationship investment scams and the devastating effect they can have on an investor’s financial future. These scams are called various names, including romance scams, crypto investment scams, financial grooming scams, and “pig butchering” scams. [NEW]~~ISDA Publishes Paper on IRRBB Management in Emerging Market and Developing Economies. On February 9, ISDA published a paper on interest rate risk in the banking book (IRRBB) in which it argues that building more effective IRRBB management frameworks supported by well-functioning interest rate derivatives markets is both a financial stability priority and a foundation for sustainable economic progress in emerging market and developing economies. [NEW]~~ISDA and FIA Respond to CPMI-IOSCO Consultation on General Business Losses. On February 5, ISDA and the Futures Industry Association (FIA) responded to the Committee on Payments and Market Infrastructures (CPMI) and International Organization of Securities Commissions (IOSCO) consultation on the management of general business risks and general business losses by financial market infrastructures (FMIs). ISDA and FIA stated that they welcome the consultation’s emphasis that FMIs should maintain sufficient resources to bear general business losses for which they are solely responsible, given these losses stem from risks under FMI control and are not appropriately allocated to participants. [NEW]~~ISDA Chief Executive Scott O’Malia Gives Remarks at Trading Book Capital Event. On February 5, Scott O’Malia gave welcoming remarks at ISDA’s Trading Book Capital event. In his remarks, O’Malia highlighted three priorities: (1) preserving the viability of Fundamental Review of the Trading Book internal models and improving current treatment of non-modellable risk factors, (2) mitigating market‑functioning strains, and (3) ensuring that the supplementary leverage ratio operates as a backstop after recent U.S. modifications.~~ISDA Responds to RBI Unique Transaction Identifier Proposals. On February 3, ISDA submitted comments to a Draft Circular from the Reserve Bank of India (RBI) proposing to mandate the global Unique Transaction Identifier for all transactions in OTC markets for Rupee interest rate derivatives, forward contracts in Government securities, foreign currency derivatives, foreign currency interest rate derivatives, and credit derivatives in India.~~ISDA Publishes Paper on How and Why Pension Funds Use Derivatives. On February 2, ISDA published a paper that it said reviews how and why pension funds use derivatives. It also reviews the global regulatory landscape that shapes derivatives use and highlights the role ISDA plays in helping pension funds navigate these markets.~~The following Gibson Dunn attorneys assisted in preparing this update: Jeffrey Steiner, Adam Lapidus, Karin Thrasher, and Alice Wang.~~Gibson Dunn’s lawyers are available to assist in addressing any questions you may have regarding these developments. Please contact the Gibson Dunn lawyer with whom you usually work, any member of the firm’s Derivatives practice group, or the following practice leaders and authors:~~Jeffrey L. Steiner, Washington, D.C. (202.887.3632, jsteiner@gibsondunn.com)~~Michael D. Bopp, Washington, D.C. (202.955.8256, mbopp@gibsondunn.com)~~Michelle M. Kirschner, London (+44 (0)20 7071.4212, mkirschner@gibsondunn.com)~~Darius Mehraban, New York (212.351.2428, dmehraban@gibsondunn.com)~~Jason J. Cabral, New York (212.351.6267, jcabral@gibsondunn.com)~~Adam Lapidus, New York (212.351.3869,  alapidus@gibsondunn.com )~~Stephanie L. Brooker, Washington, D.C. (202.887.3502, sbrooker@gibsondunn.com)~~William R. Hallatt, Hong Kong (+852 2214 3836, whallatt@gibsondunn.com )~~David P. Burns, Washington, D.C. (202.887.3786, dburns@gibsondunn.com)~~Marc Aaron Takagaki, New York (212.351.4028, mtakagaki@gibsondunn.com )~~Karin Thrasher, Washington, D.C. (202.887.3712, kthrasher@gibsondunn.com)~~Alice Yiqian Wang, Washington, D.C. (202.777.9587, awang@gibsondunn.com)~~© 2026 Gibson, Dunn & Crutcher LLP.  All rights reserved.  For contact and other information, please visit us at www.gibsondunn.com.~~Attorney Advertising: These materials were prepared for general informational purposes only based on information available at the time of publication and are not intended as, do not constitute, and should not be relied upon as, legal advice or a legal opinion on any specific facts or circumstances. Gibson Dunn (and its affiliates, attorneys, and employees) shall not have any liability in connection with any use of these materials.  The sharing of these materials does not establish an attorney-client relationship with the recipient and should not be relied upon as an alternative for advice from qualified counsel.  Please note that facts and circumstances may vary, and prior results do not guarantee a similar outcome.~~Download PDF~~

Feb 13

7 min