US regulators drop plans to make big trading firms more resilient to failure

The Commodity Futures Trading Commission has formally withdrawn its proposed rules for how major trading firms should handle operational failures. This means firms that trade futures and swaps will not face new requirements to prove they can recover from disruptions.

Regulators had proposed these rules to prevent a single operational failure at a major trading firm from cascading through the financial system. Now, those firms will not have to invest in new systems or processes to meet these resilience standards. This decision means the financial system remains exposed to the same operational risks as before.