What’s Next for Global Derivatives Trading

Highlights from the 2025 Asset Management Derivatives Forum

Earlier this month, SIFMA AMG and FIA hosted the annual Asset Management Derivatives Forum, where we brought together market participants from all sides of a trade to examine the latest developments in global derivatives trading and clearing, operations, and regulation. While this event is always great, this year’s discussions were particularly fascinating as market participants grappled with what the new administration, new Congress, and new leadership at the regulatory agencies will mean as so many transformational changes are underway for our industry.

At the Forum, we discussed how leadership changes in Washington create a degree of uncertainty but also clearly produce opportunity, as we work to advocate for the best policies for our industry and clients. From this perspective, we considered operational challenges and regulatory goals for all aspects of the derivatives markets. A few of the highlights from the Forum are noted below.

The Road Ahead on Treasury Clearing

It’s no surprise that the program had a strong focus on U.S. Treasury clearing, given it is a massive undertaking for market participants and the current implementation deadlines set by the regulators are unrealistic at best. The Forum provided a useful venue to discuss all the components necessary to successfully move to a cleared model. Some of the key discussions on Treasury Clearing at the Forum included:

• Standard clearing documentation for “Done-With” transactions, published last September by SIFMA;
• Work on standard documentation for “Done-Away” style transactions, to be published soon;
• Need for answers to numerous interpretive questions that have arisen on both the buy and sell side, and more (see our Industry Considerations Report, published with EY).

Citadel Securities’ Jim Esposito On “Next Gen” Market Makers, Evolution of the Industry and Regulatory Shifts

Citadel Securities’ president, Jim Esposito, joined SIFMA’s Ken Bentsen for the Keynote Fireside Chat at the Forum. As a senior leader of a firm that executes almost a quarter of all U.S. equities volume, Jim provided his perspective on the future of the securities industry, including:

• The opportunities ahead for Citadel Securities’ institutional and retail clients;
• Driving innovation and efficiency with AI and machine learning;
• Potential impact of the US administration change and policy shifts; and
• Appropriate differences in regulation between banks, broker-dealers, and non-bank entities.

Commissioner Pierce on the SEC in 2025

In a notable conversation on the final day of the Forum, U.S. Securities and Exchange Commissioner Hester Peirce and Lindsay Gurbacki of Alliance Bernstein discussed the need for industry to engage with the Commission on regulatory issues. Commissioner Peirce also reiterated her hope that the Commission will move away from a prescriptive regulation and return to its principles-based approach. They agreed capital formation is a top priority and that capital markets must be allowed to function efficiently to be effective. Commissioner Peirce also requested industry feedback on the work of the new Crypto Task Force.

Stay tuned for more: Our post-Forum debrief is coming soon, co-authored with our co-hosts at FIA, which will include further notes on Treasury clearing, innovation, and more.

Author

Lindsey Keljo  is Managing Director, Associate General Counsel and Head of Asset Management Group for SIFMA.