Cadwalader partner Peter Malyshev was mentioned in a recent Risk.net article on the Commodity Futures Trading Commission’s proposed operational resilience framework.

While supportive of the proposal’s objectives, Peter noted it is a low priority for the CFTC under the current administration. He emphasized that operational resilience goes beyond cybersecurity, encompassing issues such as those raised by the COVID-19 pandemic. He also observed that even without direct regulation of third-party vendors, the CFTC can still place pressure on regulated entities to ensure their vendors meet appropriate standards.

Peter added that any final framework would likely need to be updated to reflect recent developments, particularly the rapid expansion of cryptocurrency trading and technology. Unlike banks in conventional derivatives markets, many crypto firms are non-banks for which the CFTC is the sole regulator.

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