Capital markets in 2025: Preparing for regulatory shifts
Balancing innovation with compliance
With a potential deregulatory agenda on deck under the new administration, capital markets are entering a new regulatory phase in 2025. Central clearing requirements and artificial intelligence (AI) governance will be pivotal features of the compliance agenda in the year ahead. Explore the potential impact of changes at the regulatory agencies on these and other topics, including Reg BI and fiduciary standards.
The regulatory environment is expected to change in 2025. Recent court rulings curtail regulators’ authority to issue and interpret rules without court review, and the new Trump administration is expected to pursue a deregulatory agenda. Treasury and repo market participants face compliance challenges adopting central clearing. Organizations may need to answer how they will govern AI use and meet compliance expectations. Regulators will scrutinize organizations’ integration of the Securities and Exchange Commission’s (SEC) Regulation Best Interest (Reg BI) and fiduciary standards. New rules will enforce greater transparency and disclosure for market competitiveness.
For our 2025 capital markets regulatory outlook, we have identified five main themes that capital markets organizations should focus on in the coming year:
- Unwinding reforms expected
- Treasury clearing: Higher standards and new roles
- AI is transformative but must be trustworthy
- Reg BI and regulatory overlap on fiduciary standards
- A focus on disclosure, transparency, and price discovery
The road ahead requires a map
With a new administration taking over, regulatory headwinds are shifting. However, key initiatives like Treasury central clearing and non-centrally cleared bilateral repo (NCCBR) data collection remain a high priority. While new rulemaking might slow, organizations should stay vigilant since federal regulators’ pivot could lead to more state mandates. 2025 is an opportunity for the industry to influence regulatory priorities.
If you are interested in learning more about the capital markets industry, check out our recently released 2025 capital markets industry outlook here.
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Irena Gecas-McCarthy
