Category: 3. Business

LONDON, Nov 19 (Reuters) – Median pay settlements granted by British employers in the three months to the end of October rose to their highest so far this year at 3.3%, up from 3% in the three months to September.

Brightmine said the move reflected higher public sector pay deals which took effect in August and September.

Sign up here.

“Early indications suggest that 2026 pay awards are likely to remain steady – and potentially edge lower – as cost pressures continue to weigh on employers,” Brightmine manager Sheila Attwood said.

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Ultra-processed food (UPF) is linked to harm in every major organ system of the human body and poses a seismic threat to global health, according to the world’s largest review.

UPF is also rapidly displacing fresh food in the diets of children and adults on every continent, and is associated with an increased risk of a dozen health conditions, including obesity, type 2 diabetes, heart disease and depression.

The sharp rise in UPF intake worldwide is being spurred by profit-driven corporations using a range of aggressive tactics to drive consumption, skewer scientific debate and prevent regulation, the review of evidence suggests.

The findings, from a series of three papers published in the Lancet, come as millions of people increasingly consume UPF such as ready meals, cereals, protein bars, fizzy drinks and fast food.

In the UK and US, more than half the average diet now consists of UPF. For some, especially people who are younger, poorer or from disadvantaged areas, a diet comprising as much as 80% UPF is typical.

Evidence reviewed by 43 of the world’s leading experts suggests that diets high in UPF are linked to overeating, poor nutritional quality and higher exposure to harmful chemicals and additives.

A systematic review of 104 long-term studies conducted for the series found 92 reported greater associated risks of one or more chronic diseases, and early death from all causes.

One of the Lancet series authors, Prof Carlos Monteiro, professor of public health nutrition at the University of São Paulo, said the findings underlined why urgent action is needed to tackle UPF.

“The first paper in this Lancet series indicates that ultra-processed foods harm every major organ system in the human body. The evidence strongly suggests that humans are not biologically adapted to consume them.”

He and his colleagues in Brazil came up with the Nova classification system for foods. It groups them by level of processing, ranging from one – unprocessed or minimally processed foods, such as whole fruits and vegetables – to four: ultra-processed.

This category is made up of products that have been industrially manufactured, often using artificial flavours, emulsifiers and colouring. They include soft drinks and packaged snacks, and tend to be extremely palatable and high in calories but low in nutrients.

They are also designed and marketed to displace fresh food and traditional meals, while maximising corporate profits, Monteiro said.

Critics argue UPF is an ill-defined category and existing health policies, such as those aimed at reducing sugar and salt consumption, are sufficient to deal with the threat.

Monteiro and his co-authors acknowledged valid scientific critiques of Nova and UPF – such as lack of long-term clinical and community trials, an emerging understanding of mechanisms, and the existence of subgroups with different nutritional values.

However, they argued future research must not delay immediate action to tackle the scourge of UPF, which they say is justified by the current evidence.

“The growing consumption of ultra-processed foods is reshaping diets worldwide, displacing fresh and minimally processed foods and meals,” Monteiro warned.

“This change in what people eat is fuelled by powerful global corporations who generate huge profits by prioritising ultra-processed products, supported by extensive marketing and political lobbying to stop effective public health policies to support healthy eating.”

The second paper in the series proposes policies to regulate and reduce UPF production, marketing and consumption. Although some countries have brought in rules to reformulate foods and control UPF, “the global public health response is still nascent, akin to where the tobacco control movement was decades ago”, it said.

The third paper says that global corporations, not individual choices, are driving the rise of UPF. UPF is a leading cause of the “chronic disease pandemic” linked to diet, with food companies putting profit above all else, the authors said.

The main barrier to protecting health is “corporate political activities, coordinated transnationally through a global network of front groups, multi-stakeholder initiatives, and research partners, to counter opposition and block regulation”.

Series co-author Prof Barry Popkin, from the University of North Carolina, said: “We call for including ingredients that are markers of UPFs in front-of-package labels, alongside excessive saturated fat, sugar, and salt, to prevent unhealthy ingredient substitutions, and enable more effective regulation.”

The authors also proposed stronger marketing restrictions, especially for adverts aimed at children, as well as banning UPF in public places such as schools and hospitals and putting limits on UPF sales and shelf space in supermarkets.

One success story is Brazil’s national school food programme, which has eliminated most UPF and will require 90% of food to be fresh or minimally processed by 2026.

Scientists not involved in the series broadly welcomed the review of evidence but also called for more research into UPF, cautioning that association with health harm may not mean causation.

By Emily Bary

Apple has been seen as an AI loser. That means its stock hasn’t gotten caught up in the heavy selling pressure on AI stocks.

Apple has been able to drive strong iPhone upgrades from people looking to replace much older devices.

What was once the biggest knock against Apple’s stock is now proving to be a positive as tech shares come under pressure.

Not only has Apple’s stock (AAPL) beaten the tech-heavy Nasdaq Composite Index COMP since the start of November, but it’s outperformed the more broad-based S&P 500 SPX as well. That partly owes to the fact that AI plays have been hard hit in recent sessions, but Apple isn’t seen as an AI stock.

“Apple shares have shown resilience compared to their mega-cap peers as they have significantly less exposure to the AI cycle,” D.A. Davidson analyst Gil Luria told MarketWatch in emailed comments.

Microsoft’s stock (MSFT) is getting close to joining Nvidia (NVDA), Amazon.com (AMZN) and Tesla (TSLA) shares in correction territory, which is defined as a 10% drop or more off a recent closing high. And Meta’s stock (META) is already in a bear market, meaning it’s off more than 20% from its recent closing high. But Apple and Alphabet (GOOG) (GOOGL) shares stand out, down less than 3% from their recent highs.

See more: Two more ‘Magnificent Seven’ stocks are now in correction territory as the AI trade unwinds

While people use their iPhones to access AI tools, “the current iPhone upgrade cycle is showing that [Apple] does not need AI in order to drive demand,” Luria continued. “An aging iPhone base is translating to the best upgrade cycle in years, which is helping deliver the current resilience.”

Apple has vastly underspent its Big Tech peers on its artificial-intelligence buildout, opting for more of a hybrid approach to data centers. FactSet data indicates Amazon spent approximately 10 times as much on capital expenditures in the September quarter than Apple did.

The iPhone maker’s more measured approach to AI spending has largely been perceived as a negative by Wall Street up until this point. Apple has been branded an AI laggard, and indeed the company has struggled to roll out the AI features it has teased. But now the market is getting more jittery about fellow tech giants’ rampant data-center spending, which has in some cases prompted debt financing despite uncertainties around the returns on these investments.

More from MarketWatch: Amazon and Microsoft shares could be in trouble due to AI’s destructive economics

Apple shares now rank in the middle of the pack among “Magnificent Seven” players this year. Up about 7%, they dramatically lag Alphabet shares, which are the group’s leader. But they’ve now beaten out shares of Meta, for instance, which have been dogged recently by concerns about AI overspending.

Jeffrey Favuzza, a tech, media and telecommunications strategist at Jefferies, said Apple’s recent outperformance has more to do with the fact that investors have underweighed the stock relative to others in the group.

There are still numerous questions facing Apple investors, he said, including whether a foldable phone will materialize and be a big driver of upgrades. Investors are also left to wonder who will succeed CEO Tim Cook, after the Financial Times recently reported that he may step down as soon as next year.

Plus, there’s been somewhat of a “brain drain” from Apple’s AI ecosystem, Favuzza added. And while Apple isn’t spending nearly as much as rivals on AI, its operating expenses moved higher in the latest quarter, casting some doubt around future earnings trends.

Don’t miss: Nvidia earnings have become crucial to the stock market – and this time even more so

-Emily Bary

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

  (END) Dow Jones Newswires

  11-18-25 1754ET
Copyright (c) 2025 Dow Jones & Company, Inc.

Hewlett Packard (HP) is seeking $1.7bn (£1.3bn) from the estate of Mike Lynch – who died last year when his yacht sank – over HP’s acquisition of his firm Autonomy, the tech giant’s lawyers have told the High Court.

HP, now known as Hewlett-Packard Enterprise (HPE), bought Mr Lynch’s tech firm Autonomy in 2011, but it says Mr Lynch and Autonomy’s former chief financial officer, Sushovan Hussain, misrepresented the company’s finances.

In a 2019 trial, HPE had accused Mr Lynch of inflating Autonomy’s revenues which it said forced it to announce an $8.8bn write-down of the company’s worth.

Mr Justice Hildyard ruled in 2022 that HPE had “substantially succeeded” in its claim, but that it was likely to receive “substantially less” than the $5bn it sought in damages.

Earlier this year, he ruled that HPE suffered losses amounting to around £700m through the purchase of Autonomy.

Mr Lynch and his teenage daughter Hannah were among seven passengers and crew who died when the Bayesian went down off the coast of Sicily last August during a storm which caused the vessel to capsize and sink.

A hearing in London, which began on Tuesday, will now decide whether Mr Lynch’s estate can appeal against the 2022 and 2025 rulings.

In written submissions, Patrick Goodall, the barrister representing HPE, argued that Mr Lynch’s estate was liable to pay $1.7bn, which includes around $761m in interest.

He said that Mr Lynch had “not only perpetrated an enormous fraud, but lied about it at every stage”.

He said the claimants had spent almost £150m on the legal battle, and were seeking nearly £113m of their costs from Mr Lynch’s estate.

Mr Goodall also said that Mr Lynch’s estate should not be allowed to appeal against either the 2022 or 2025 rulings.

In written submissions, Richard Hill, the lawyer representing Mr Lynch’s estate, said that the $761m in interest sought by the claimants was an “excessive sum… based on a flawed analysis” and that the “legally and economically rational approach would provide for a materially lower figure”.

The claimants’ position that “they were the victors in this litigation” was “overly simplistic”, he added.

Mr Hill also said that Mr Lynch’s estate should be allowed to appeal against the two earlier rulings, claiming that the judge “erred in law” and that there was a “compelling reason for allowing the appeal to be heard”.

A spokesperson for the Lynch family said: “Today’s hearing addresses technical matters that change nothing about the underlying substance of the case.

“The core facts remain that HP’s claim was fundamentally flawed and a wild overstatement.”

In a separate case, Mr Lynch was extradited to the US in 2023 to face criminal charges, and he was cleared of fraud charges in 2024.

He was celebrating being acquitted on his yacht when it sank.

(Bloomberg) — Asian stocks were mainly set for a positive open, even as Wall Street’s selloff deepened amid mounting concerns over lofty valuations in the artificial intelligence sector.

Equity-index futures pointed to gains in Japan and Hong Kong following three days of losses for both benchmarks, and a small decline for Australia. The S&P 500 index fell for a fourth day, the longest losing streak since August. A basket of the Magnificent Seven companies declined 1.8%. Nvidia Corp., at the center of the AI frenzy, slumped 2.8% ahead of its earnings report after Wednesday’s close.

Bitcoin climbed after briefly dropping below $90,000. The yield on 10-year Treasuries slid three basis points to 4.11%. The dollar wavered.

Wall Street has grown increasingly concerned that AI isn’t yet generating enough revenue or profits to justify the massive spending on infrastructure. Microsoft Corp. and Nvidia are committing to invest up to a combined $15 billion in Anthropic PBC, in a move that ties the AI developer closer to two of the biggest backers for its rival OpenAI.

“The question isn’t really whether we’re in a bubble,” said Sonu Varghese at Carson Group. “The real question is how long the current trend in AI spending will last and how bad the fallout will be when it ends.”

The S&P 500 is down more than 3% this month, on pace for its worst November since 2008. Volatility has roared back. Wall Street’s so-called fear gauge, the Cboe Volatility Index, topped 24 — above the key 20 level that causes concern for traders — and reached its highest in a month.

Also high on the list of worries are whether the Federal Reserve will cut interest rates next month. Traders have less conviction about another reduction in borrowing costs, with swaps now implying a less-than-50% likelihood of a December move. Several policymakers have recently cautioned against one, citing the risk of inflation, although Fed Governor Christopher Waller repeated his view in favor of lowering rates.

Treasuries are on course for their first back-to-back gains of the month, edging higher amid the selloff in stocks and fresh signs of weakness in the US labor market.

Jobless claims totaled 232,000 in the week ended Oct. 18, according to the Labor Department website showing historical data for claims. Companies shed 2,500 jobs per week on average in the four weeks ended Nov. 1, according to ADP Research.

The ADP snapshot of the labor market has helped bridge the gap with official employment data delayed by the longest government shutdown in history. While funding to official statistics agencies has been restored, it’s still unclear when October economic data will be issued.

“The stock market has started to doubt the Fed’s ability to cut rates in December, so should Thursday’s jobs report come in weaker than expected, it may clear the path for the Fed to cut in December and fuel the Santa Claus rally we anticipate, which could push the S&P 500 to 7,100 by year-end,” said James Demmert at Main Street Research.

Nvidia Reports

Nvidia, on a standalone basis, has grown larger than the energy, materials, and real-estate sectors combined and depending on the day, it even exceeds the combined weight including the utilities sector, according to Ryan Grabinski at Strategas. It’s also bigger than the entire industrials sector.

“The outcome is likely to send ripple effects through both US and international markets,” Grabinski said. “Although expectations for AI more broadly have cooled in recent weeks, this report has the potential to shift sentiment back to optimism. That said, the bar is undeniably high right now.”

Following Nvidia’s results, traders will then focus on the September US jobs report, scheduled to be released on Thursday after a lengthy delay.

In commodities, oil rose as hawkish rhetoric by the European Union’s top diplomat raised expectations that sanctions on Russia will tighten. Meanwhile, gold wavered.

Some of the main moves in markets:

Stocks

Hang Seng futures rose 0.5% as of 7:32 a.m. Tokyo time S&P/ASX 200 futures fell 0.2% Nikkei 225 futures rose 0.8% Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1580 The Japanese yen was little changed at 155.48 per dollar The offshore yuan was little changed at 7.1116 per dollar The Australian dollar was little changed at $0.6506 Cryptocurrencies

Bitcoin rose 0.9% to $93,271.57 Ether rose 0.9% to $3,124.01 Bonds

The yield on 10-year Treasuries declined three basis points to 4.11% Australia’s 10-year yield was little changed at 4.44% This story was produced with the assistance of Bloomberg Automation.

©2025 Bloomberg L.P.

Thank you to Walt and the entire FIA team for inviting me here to speak at FIA EXPO. It is an honor to have set out my agenda as Acting Chairman earlier this year at FIA BOCA, and to now share with you today the incredible progress that the CFTC has made to date, and what’s still to come.  It’s been an honor to usher in a new era of innovation and market structure under my leadership since January, from perpetual-style futures, 24/7 and extended hours trading, prediction markets, and the CFTC’s Crypto Sprint.

When we look back at the inflection points that re-shaped global finance, certain patterns become unmistakable. In the 1970s and 1980s, the electronification of securities markets transformed the very architecture of price discovery, market access, and risk management.  What began as incremental automation evolved into a wholesale rethinking of how markets operate—driving efficiency, transparency, and resilience on a scale that was unimaginable at the outset.

Today, we stand before a parallel moment.  Blockchain technology and the tokenization of financial instruments are not merely new tools; they represent a structural modernization of the market’s underlying infrastructure.  Just as electronic trading shifted us from paper tickets to integrated, data-rich environments, distributed ledgers shift us from siloed recordkeeping to shared, programmable, and verifiable systems of value.

The same core principles that guided prior waves of innovation—market integrity, customer protection, and sound risk governance—must anchor us now.  But we should also recognize that transformational technologies rarely arrive fully formed.  They mature through responsible experimentation, robust public-private collaboration, and clear, forward-looking regulatory frameworks.

If we approach blockchain and tokenization with the same pragmatism, curiosity, and commitment to fairness that guided earlier eras of modernization, we can unlock the efficiencies of digital assets while preserving the trust that underpins our markets.  This is our opportunity to shape the next chapter of financial evolution—one that builds on history rather than repeating it, and one that ensures U.S. markets remain a global benchmark for innovation and integrity.

What a difference a year makes.  Last November, the Digital Asset Markets Subcommittee (DAMS) of the CFTC’s Global Markets Advisory Committee (GMAC), which I sponsor, had just released its first recommendations on tokenization of non-cash collateral.  The report made the case that tokenization is “simply another technological wrapper for existing assets,” and that modern plumbing can remove frictions that hinder collateral mobility and efficiency. 

A year later, as more of the world moves to 24/7 markets in asset classes with sufficient liquidity, those initial findings are more relevant than ever.  Blockchains have proven their utility and durability as constantly upgradable financial market infrastructure, which presents a tremendous opportunity to improve the old ways of managing collateral.

Today, I’ll tell you what the CFTC has accomplished since May 2025, and outline the CFTC’s 12-month Crypto Sprint—listed spot crypto trading, tokenized collateral including stablecoins, and technical amendments to our regulations to enable the use of blockchain technology and market infrastructure.

Continuing to Deliver Results

I want to highlight some of the key accomplishments that the CFTC has achieved since our first 100 days, in addition to our day-to-day work.  I thank my directors and their staff who have been working so hard all year to deliver these results.  Most of these initiatives address proposals or concerns I raised as a Commissioner, and some address longstanding issues created by overreach in the CFTC’s implementation of the Dodd-Frank Act.  I am also very pleased that the CFTC has continued to adopt recommendations from the CFTC’s GMAC. 

Since May 2025, the CFTC has completed the following:

Swaps Market and Reducing Regulatory Burdens

• Issued staff interpretative letter regarding certain cross-border definitions to provide clarity and reaffirm the CFTC’s longstanding application of foreign futures and options and cross-border swaps regulation
• Issued staff procedures to provide clarity on treatment of non-compliance issues and enforcement for non-U.S. swap entities relying on substituted compliance
• Issued proposed rules to amend swap dealer external business conduct and swap documentation requirements
• Issued no-action letter on swap data error correction notification requirements
• Issued no-action letter on SEF order book requirements
• Withdrew proposed rules on parts 37 and 38 of CFTC regulations
• Withdrew proposed rules on operational resilience framework
• Withdrew staff guidance on listing voluntary carbon credit derivatives contracts
• Withdrew staff guidance on derivatives clearing organization (DCO) recovery plans and wind-down plans
• Withdrew staff advisory on prime brokerage arrangements

Innovation and Market Structure

• Issued staff advisory on foreign board of trade (FBOT) registration to provide clarity for non-U.S. exchanges seeking to provide direct access to U.S. participants, regardless of asset class
• Issued staff advisory on market volatility controls
• Issued staff advisory on risk management and compliance requirements for designated contract markets (DCMs), DCOs, futures commission merchants (FCMs), and introducing brokers (IBs), including sports-related event contracts
• Issued staff FAQs on FCM registration and compliance given the number of non-traditional entities and new entrants in our derivatives markets
• Announced implementation of Nasdaq Market Surveillance System to improve the CFTC’s market oversight tools
• Hosted first joint roundtable with SEC in 15 years to discuss innovation, market structure, and harmonization

Golden Age of Crypto

The American story is one of innovation.  From the great transcontinental railroads, to the internet worldwide, American entrepreneurs have held high a shining beacon to the future.  The President’s Working Group on Digital Asset Markets, established by President Trump’s executive order in the first days of the Administration, recognizes our American spirit of innovation and endorses the notion that digital assets and blockchain technologies can revolutionize not just America’s financial system, but systems of ownership and governance economy-wide. 

The President’s Working Group is ushering in the Golden Age of Crypto and published its report, Strengthening American Leadership in Digital Financial Technology, with a comprehensive set of recommendations to provide regulatory clarity and adopt a pro-innovation mindset towards digital assets and blockchain technologies. 

The report addresses key areas such as:

• Positioning America as the leader in digital asset markets

• Modernizing bank regulation for digital assets

• Strengthening the role of the U.S. dollar

• Combating illicit finance in the Digital Age

• Ensuring fairness and predictability in digital asset taxation

For too long, a lack of clarity and destructive regulation-by-enforcement policy has held back U.S. businesses and entrepreneurs whilst the rest of the world established frameworks for digital assets and crypto to facilitate innovation in their jurisdictions.  Indeed, many U.S. innovators were driven offshore to jurisdictions with more regulatory clarity, such as in Asia, Europe, and the Middle East.  That is why the U.S. cannot delay in moving forward to welcome back home Americans and others that want to invest, hire, and build in the United States of America.

Accordingly, with respect to digital asset markets, the President’s Working Group report recommends that the SEC and CFTC use their existing authorities to (1) immediately enable the trading of digital assets at the Federal level by providing clarity to market participants on issues such as registration, custody, trading, and recordkeeping; and (2) allow innovative financial products to reach consumers without bureaucratic delays through the use of tools like safe harbors and regulatory sandboxes. 

The report lauds Congressional efforts such as the historic enactment of the GENIUS Act to establish the first-ever Federal regulatory framework for stablecoins, and the passage by the House of Representatives of the groundbreaking CLARITY Act and other legislative proposals on digital asset market structure, including ongoing progress by the Senate Agriculture Committee and the Senate Banking Committee.  Meanwhile Congress continues this important work, the U.S. market regulators are answering the President’s call to act now with two complementary initiatives to continue the swift progress on providing regulatory clarity: the SEC’s Project Crypto and the CFTC’s Crypto Sprint.  Our goal is clear: for the United States to lead in responsible innovation and safe modernization, and not just talk about it.

Golden Age of Market Innovation

Together, the SEC and the CFTC have embarked on a new beginning for coordination between our agencies.  We will work together to harness our Nation’s unique regulatory structure into a source of strength for market participants, investors, and all Americans.  To the extent possible and appropriate in the public interest under existing statutes, our agencies will consider harmonizing product and venue definitions; streamlining reporting and data standards; aligning capital and margin frameworks; and standing up coordinated innovation exemptions using existing authority.

On September 29, SEC Chairman Paul S. Atkins and I hosted, for the first time in 15 years, a joint SEC-CFTC roundtable to discuss regulatory harmonization that will enable increased market choice and protect investors through clear, predictable, and pro-innovation regulatory frameworks that addresses, among other topics, innovation exemptions and DeFi.

I’ll say it again: the turf war is over.  We are getting back to basics and back to regular order.

CFTC Crypto Sprint

In August, I announced the CFTC’s 12-month Crypto Sprint to implement the President’s Working Group recommendations.  I have long advocated that simplicity is the solution, and that the U.S. must have a durable and flexible approach to regulation that will keep up with continuing innovation and stand the test of time.  I have cautioned that we must take to heart the lessons learned from the Dodd-Frank Act, which had unintended consequences such as creating regulatory moats and market fragmentation.

This means relying upon technology-neutral regulations that do not have to be continually rewritten to keep up with innovation, and activity-based regulations that do not require burdensome and costly entity-registration requirements that stifle competition by raising the gate to new entrants with less capital like start-ups and entrepreneurs. 

Right after the release of the President’s Working Group report, the SEC and CFTC outlined our near-term initiatives.  As part of our Crypto Sprint, the CFTC launched public consultations on listed spot crypto trading and all other President’s Working Group report recommendations. 

The CFTC’s Crypto Sprint has three main components: (1) listed spot crypto trading, which will be live on a DCM by the end of the year; (2) enabling tokenized collateral, including stablecoins, in derivatives markets, with guidance expected by the end of the year and DCOs going live by Q1 or Q2 of next year; and (3) a rulemaking to make technical amendments to the CFTC’s regulations for collateral, margin, clearing, settlement, reporting, and recordkeeping to enable the use of blockchain technology and market infrastructure including tokenization in our markets.  The rulemaking is expected to begin next year and be completed by August 2026. 

That will complete the CFTC’s 12-month Crypto Sprint to implement the President’s Working Group report recommendations.

Listed Spot Crypto Trading

The SEC and CFTC released a joint staff statement in September that current U.S. law does not prohibit SEC- or CFTC-registered exchanges from facilitating trading of certain spot crypto asset products.  In other words, we are bringing digital assets and crypto inside our existing regulatory perimeter for securities and futures exchanges, which has provided unmatched access, market integrity, and investor protection for nearly 100 years. 

U.S. capital markets are the deepest and most liquid in the world, and we will use that strength now.

Listed spot crypto trading on DCMs is permissible under the Commodity Exchange Act, pursuant to amendments made by the Dodd-Frank Act, for retail commodity transactions involving leverage, margin, or financing.  One type of trade workflow could resemble cash equities, where an FCM provides leverage similar to a prime broker, the DCM is the execution venue, and the DCO performs post-trade processing.  This framework may be especially appealing to institutional liquidity providers and other market participants, because it utilizes existing regulations and processes for futures and options trading; will simplify implementation of operational, risk management, and compliance requirements; and will have best-in-class customer protections and market integrity.

Cross-Border Framework

Throughout my term and my sponsorship of the CFTC’s GMAC, I have been a staunch advocate for access to markets. Drawing upon the lessons learned from Dodd-Frank, it has been a priority for me to ensure that there is a pragmatic cross-border framework, including substituted compliance, mutual recognition, and passporting as appropriate, in order to avoid market fragmentation.  That is why I believe that, in the near term, we should use our existing registration categories for brokers, dealers, exchanges, and other market participants because the CFTC’s cross-border approach to foreign markets, products, and intermediaries has been in place for decades. 

We should not have to reinvent the wheel.

Two months ago, the CFTC released an advisory to reaffirm our longstanding framework for the registration and recognition of non-U.S. exchanges or FBOTs, which dates back to the 1990s.  By using this framework to provide regulatory clarity for non-U.S. exchanges, whether traditional or digital asset markets, that are in jurisdictions with comparable regulatory regimes to the U.S., this is the fastest way that we can legally onshore trading activity efficiently and safely under CFTC regulations and open up U.S. markets to the rest of the world. 

Because of the lack of U.S. regulatory clarity and the enforcement-first approach of the past several years, many U.S. firms established affiliates in non-U.S. jurisdictions with clear regulations for crypto asset activities.  For example, these U.S. firms may have an EU crypto derivatives trading venue that is authorized under the Markets in Financial Instruments Directive (MiFID) regime as a regulated market (RM) or multilateral trading facility (MTF).  These EU trading venues could seek to provide access to U.S. market participants under the CFTC’s regulatory frameworks for FBOTs or exempt swap execution facilities (SEFs), as appropriate. 

The CFTC will also explore whether trading platforms authorized under the EU Markets in Crypto-Assets Regulation (MiCA), or similar virtual asset or crypto asset regimes, would also qualify under the CFTC’s current cross-border frameworks.  Because so many foreign jurisdictions, in the vacuum over the past several years of a coherent U.S. digital asset policy, have implemented regulatory regimes that are not technology neutral, but are instead specific to crypto and blockchain technology, I believe it is critical for the U.S. to evaluate the most pragmatic path forward, particularly because those non-U.S. crypto asset regimes already include pillars such as capital, risk management, market conduct, retail protection, custody, conflicts of interest, transparency, and illicit finance.

Tokenized Collateral Including Stablecoins

In September, the CFTC launched an initiative for the use of tokenized collateral including stablecoins in derivatives markets, with a public comment period that ends this month.  This initiative builds on the CFTC’s successful Crypto CEO Forum held in February 2025 and puts into practice the recommendations from the GMAC’s DAMS and the President’s Working Group report, directing the CFTC to provide guidance on the adoption of tokenized cash and non-cash collateral as regulatory margin.

At our historic Crypto CEO Forum, we discussed how innovation and blockchain technology will drive progress in derivatives markets, especially for modernization of collateral management and greater capital efficiency.  These market improvements will unleash U.S. economic growth because market participants can put their dollars to work smarter and go further.

The public has spoken: tokenized markets are here, and they are the future.  For years I have said that collateral management is the “killer app” for stablecoins in markets.  The CFTC continues to move full speed ahead at the cutting edge of responsible innovation, and I appreciate the support of our industry partners.

Our markets are global and increasingly 24/7, but bank rails are not.  That mismatch creates avoidable settlement risk and unnecessary drag on capital.  The GMAC’s work last year documented the operational bottlenecks of today’s non-cash collateral—sequential intermediaries, limits on secondary transfers, lack of 24/7/365 capabilities—and points to blockchain as a means to deliver real-time collateral mobility without changing the character of the asset itself.

Now, the CFTC is taking a concrete step toward enabling real-time collateral mobility, improving capital efficiency, and hard-wiring resiliency into U.S. clearing and settlement infrastructure.  By working side-by-side with market participants, clearinghouses, and prudential regulators, the CFTC is helping operationalize what we’ve been talking about for years: moving from pilots and proofs-of-concept to the supervised use of tokenized collateral within our existing regulatory framework.  Important issues like convertibility, liquidity, transparency, custody safeguards, and haircuts should be addressed, so everyone knows the rules of the road.

Tokenized money market funds 

The CFTC sees tokenized money market funds, or TMMFs, as a fast-follower use case building directly on the same risk framework.

Money market funds already play a central role in derivatives margin today.  The GMAC’s prior margin-rule recommendations paved the way by calling on the CFTC to remove outdated restrictions on MMFs engaged in repo and securities lending.

Tokenization simply modernizes how those MMFs are recorded and transferred.  It turns daily NAV shares into onchain instruments that can move 24/7 between eligible custodians and clearing members.

Here’s how this could work:

• Eligible assets: TMMFs would remain regulated under Rule 2a-7 and maintain all existing liquidity, maturity, and credit-quality standards.
• Custody and control: DCOs and FCMs would hold perfected control over the tokenized share—not the underlying portfolio—consistent with how we treat tokenized cash under GENIUS.
• Haircuts and valuation: TMMF tokens would be haircut using the same risk-based approach already applied to MMFs under Part 39, adjusted for any settlement-time differences.
• Liquidity resource qualification: Because TMMFs settle in U.S. dollars and are redeemable on demand through regulated intermediaries, DCOs may count them as qualifying liquidity resources under § 39.33(c)(3).
• Interoperability: With both payment stablecoins and TMMFs tokenized to common standards, clearing members could seamlessly move collateral between cash-like and yield-bearing positions, improving resiliency, and capital efficiency.

As I’ve said before: embracing new technology does not mean compromising on market integrity—it means using technology to achieve the same protections faster, cheaper, and better.

Qualified payment stablecoins

Congress has now drawn bright lines: payment stablecoins that meet strict prudential standards—dollar-denominated, non-yield-bearing, 1:1 redeemable, backed by high-quality liquid reserves, and issued by appropriately supervised U.S. entities—are money-like instruments. That is exactly the class of tokens we’re talking about as collateral and settlement assets.

Important questions will need to be addressed regarding whether our rules should treat these qualified payment stablecoins as cash or cash equivalents, as commenters highlight their stable value, high liquidity, and ready convertibility.  For VM, that means considering whether haircuts are appropriate.  For IM, I believe that an interim “look-through” approach tied to disclosed reserve assets is a practical bridge while the market scales.  In times of market stress, it may be necessary to consider whether a Fed facility for stablecoins is appropriate to address liquidity and other concerns.

Specifically, the GENIUS Act implicates CFTC regulations in certain key areas. Section 3(g) states that payment stablecoins that are not issued by a permitted issuer cannot be used as cash or as cash equivalent margin or collateral for FCMs, DCOs, or swap dealers. Section 10 states that CFTC registrants (such as FCMs and swap dealers) can provide custodial or safekeeping services with respect to payment stablecoins, including that Section 10(b) requirements can be superseded by similar CFTC requirements.  The CFTC welcomes public comments on these GENIUS Act provisions as part of the CFTC’s Crypto Sprint.

Part 39 and DCO initiatives

Some DCOs have announced initiatives to use stablecoins as collateral.  In order to advance regulatory clarity and implement the GENIUS Act, I encourage DCOs and their clearing members to consider, under existing Part 39, whether qualified payment stablecoins are:

• Eligible margin and settlement assets
• Acceptable as initial margin
• Qualifying liquidity resources and
• Unencumbered liquid financial assets

Equally important, I want to acknowledge questions about perfected security interest.  To comply with Part 39, a perfected security interest with respect to stablecoins should be addressed.  I believe that seeking a lien over the issuer’s underlying reserve assets may conflict with the purposes of the GENIUS Act, which treats the payment stablecoin itself as the settlement asset.

Further, I believe that we should avoid double-counting of liquidity resources, which is consistent with the Principles for Financial Market Infrastructures (PFMI) on settlement assets.  Once the CFTC issues its tokenized collateral guidance, bodies such as the Committee on Payments and Market Infrastructure and the International Organization of Securities Commissions (CPMI-IOSCO) may want to consider whether international standard setting is appropriate to prevent market fragmentation, mitigate systemic risk, and ensure financial stability.

Other steps

In addition, the CFTC will consider whether relief is appropriate to:

1. Add qualified payment stablecoins to the eligible collateral list for swap entities
2. Recognize qualified payment stablecoins for certain purposes for VM, and
3. Permit DCOs and FCMs to invest customer funds in them, with appropriate limits on concentration, custody, and convertibility.

Conclusion

As we chart this next stage of market modernization, we should remember that every major advance in finance has been propelled by a simple belief: that with integrity, collaboration, and discipline, we can build systems that serve people better than the ones that came before.  The electronification of past decades did not diminish our markets—it elevated them, expanding opportunity while strengthening resilience.  Blockchain and tokenization offer us a similar horizon today.  If we meet this moment with the same professionalism and commitment to the public interest, we can shape a future where our markets are not only efficient with more access, but also more transparent, more competitive, and more innovative.  That’s the job, and that’s what we will achieve together.

Thank you.

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Chancellor Rachel Reeves has asked the UK competition watchdog to investigate the cost of private dental treatment amid mounting concern about a sharp increase in prices.

Reeves has written to the Competition and Markets Authority requesting a market study into “private dentistry costs and practices”, saying that patients may be paying more than is necessary.

Prices for private dental treatment have climbed sharply in recent years, according to research by myTribe Insurance, a website providing information about private healthcare and insurance.

The research, published in December last year, found that patients were paying up to 32 per cent more for private dental procedures in 2024 compared with 2022.

An analysis of data over this period by myTribe from 450 private dental practices found the average cost of a white filling had increased 23 per cent to £129 last year, while the average cost of a tooth extraction had risen 32 per cent to £139.

Reeves said: “The scourge of hidden costs, lack of transparency and overtreatment has blighted families in need of dental treatment for too long.

“That’s why I want to see urgent action taken to help reduce prices, whilst the cost of living still puts pressure on families across the country.” 

A spokesperson for the CMA said they “welcome the request from the chancellor to carry out a study into the private dental care market”.

“This is an important market that needs to work well for consumers,” they added. “We have been exploring the merits of work in this area and will be developing a specific proposal to put to our board.”

Reeves’ request to the CMA to investigate private dentistry costs and practices comes after ministers in January forced out the regulator’s then chair, Marcus Bokkerink, because of concerns that the watchdog was not sufficiently focused on growth.

But the government’s deregulatory agenda and attempts to nurture growth have had to be accommodated alongside its efforts to address Britons’ concerns about the cost of living.

The dental sector has said the government’s increase in employer national insurance contributions in last year’s Budget has pushed up costs for practices and played a role in the increase in prices for private treatment.

A shortage of dentists, combined with strong demand for their services, has enabled practices to push up their charges for private procedures, according to one trade body.

Neil Carmichael, executive chair of the Association of Dental Groups, said: “Without a significant increase in new dentists, consequential inflationary pressures are bound to be felt across the sector.

“Many ADG members have already found recent increases in national insurance and costs for essential supplies to be difficult to absorb.”

Dentists have also flagged major problems with the NHS dental contract, which has contributed to long waiting times for treatment on the health service.

Under the NHS contract, practices are paid set fees to deliver a certain number of “units of dental activity”, or treatments, each year.

Dentists have complained that the system has left them struggling to cover their costs, with simple procedures sometimes remunerated at the same rate as complex treatment, such as root canal surgery. 

The sector has said the system has contributed to the increase in private dental prices, as some practices seek to cover the costs of doing NHS work.