Q1 2025 Financial Regulatory Rules Roundup

The opening months of 2025 have brought a wave of regulatory activity across trading and financial markets. From the SEC finalizing long-debated equity market reforms to CFTC guidance on digital asset derivatives, here is a structured summary of the most consequential developments you need to know.

Table of Contents

  1. SEC Actions
  2. CFTC Actions
  3. FINRA Notices
  4. International Developments

SEC Actions

The Securities and Exchange Commission remained one of the most active rulemaking bodies entering 2025. Key actions included:

  • Equity Market Structure Amendments: Final rules addressing order competition, tick sizes, and access fees for exchange-listed equities moved toward implementation. Broker-dealers and exchanges were given phased compliance timelines.
  • Climate-Related Disclosure Rules: Following legal challenges, revised climate disclosure requirements for public companies were republished with a narrowed scope, focusing on Scope 1 and Scope 2 emissions for larger accelerated filers.
  • Private Fund Adviser Rules: Portions of the private fund adviser rules that survived judicial review began their compliance countdown, requiring registered advisers to enhance reporting and fee disclosure practices.

CFTC Actions

The Commodity Futures Trading Commission focused heavily on digital assets and risk management frameworks:

  • Digital Asset Derivatives Guidance: Staff issued interpretive guidance clarifying how existing derivatives regulations apply to crypto-linked products traded on designated contract markets (DCMs).
  • Margin Requirements for Uncleared Swaps: Phase 6 compliance for smaller market participants continued to be monitored, with no-action relief extended in limited circumstances for cross-border transactions.
  • Position Limits Enforcement: The CFTC signaled renewed focus on position limit violations in energy derivatives markets, issuing several enforcement actions.

FINRA Regulatory Notices

FINRA issued several regulatory notices relevant to broker-dealers:

  • Updated guidance on best execution obligations in fixed income markets, particularly for retail-size transactions.
  • A new notice on social media and influencer communications, reminding firms of supervision obligations under existing communications rules.
  • Proposed amendments to margin rules addressing volatility-linked products and leveraged ETFs.

International Developments

Globally, several jurisdictions advanced significant rulemaking:

  • EU: MiCA (Markets in Crypto-Assets) regulations entered full application, creating a comprehensive licensing regime for crypto-asset service providers operating in the EU.
  • UK: The FCA continued to consult on post-Brexit trading venue rules, including updates to transparency requirements for bond and derivatives markets.
  • IOSCO: The International Organization of Securities Commissions published recommendations on AI and machine learning use in trading and investment management.

What to Watch in Q2 2025

Looking ahead, market participants should monitor ongoing SEC comment periods on short-selling disclosure rules, CFTC finalization of its cross-border framework, and Basel III endgame capital requirements moving through the U.S. banking regulatory process. Staying ahead of implementation timelines is essential for compliance teams across the industry.