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Stephen M. Humenik

Partner
+1.202.778.9477
Fax +1.202.778.9100
Stephen M. Humenik is a partner at the firm’s Washington, D.C. office. He is a member of the investment management and derivatives and structured products practices. He has over twenty years of experience on cross-border regulatory, compliance and enforcement matters involving the U.S. Commodity Futures Trading Commission (CFTC) and global markets for derivatives, physical and financial commodities. Mr. Humenik applies his business, operational, and government experience to the implementation of CFTC regulations, including the registration, trading, clearing and other compliance obligations of the Dodd-Frank Act and other global regulatory reforms for a diverse range of clients, including asset managers, hedge funds, swap dealers, financial institutions, trading platforms, commodity end-users, corporate end-users, trade associations, and cryptocurrency and FinTech companies.

Professional Background

Prior to joining the firm, Mr. Humenik served as of counsel at an international law firm where he led the futures and derivatives practice. Mr. Humenik was previously general counsel and chief regulatory officer of an interest rate swap derivatives market, where he oversaw the legal and regulatory affairs of the exchange, including the exchange’s designation as a contract market, and ongoing compliance with CFTC regulations, and the exchange’s connectivity to its clearing house.

He previously served at the CFTC as a special counsel and policy advisor to former CFTC Commissioner Scott O’Malia during the passage of the Dodd-Frank Act. He began his career in the CFTC’s Division of Enforcement where he investigated and prosecuted matters involving market manipulation and fraud.

Achievements

  • Legal 500 US, Energy: Regulatory

Professional/Civic Activities

  • Chicago Bar Association, Futures and Derivatives Law Committee
  • DC Bar Association, Derivatives and Futures Law Committee
  • American Bar Association
  • Advisory Committee Member, Legal Counsel for the Elderly

Speaking Engagements

  • Market Fragmentation: Key Issues and Impacts, April 10, 2019, ISDA 34th Annual General Meeting, Hong Kong
  • Recalibrating Regulation: What's Next?, February 19, 2019, The FIA-SIFMA AMG Asset Management Derivatives Forum.
  • Swaps Reform: The Story So Far, October, 19, 2018, FIA Expo 2018
  • Leaders’ Panel, September 18, 2018, ICDA 39th Annual European Summit for Commodities and Derivatives 2018
  • FinTech Panel, September 18, 2018, ICDA 39th Annual European Summit for Commodities and Derivatives 2018
  • Cross Border, May 4, 2018, FIA Law & Compliance 2018
  • "Clarifying MiFID II - What does the impending EU reform mean for US entities?," June 2016, Fixed Income Leaders Summit
  • "CFTC and NFA Cybersecurity Landscape," May 2016, D.C. Bar
  • "CFTC and FERC enforcement targets and compliance program protections," May 2016, Energy Risk USA 2016
  • "Capital & Leverage," May 2016, FIA Law & Compliance Division Conference on the Regulation of Futures, Derivatives and OTC Products
  • "Chief Compliance Officers - CFTC Regulatory Requirements," April 2016, ISDA Enforcement Conference
  • "CFTC Regulation Automated Trading - Compliance and Enforcement Issues," April 2016, ISDA Enforcement Conference
  • "The global regulation game - What are the practical implications of MiFID II on your cross-border FX trading activities?," February 2016, TradeTech FX USA
  • "Latest Developments in Swap Execution," February 2016, FIA/SIFMA Asset Management Derivatives Forum 2016
  • "Fireside Chat with CFTC Chairman Timothy Massad," November 2015, Chicago Bar Association
  • "Chief Compliance Officers - CFTC Regulatory Requirements," October 2015, ISDA Enforcement Conference
  • "CFTC Regulatory and Enforcement Update," September 2015, Commodity Markets Council Compliance Forum
  • "Clearing Swaps without a Mandate: Incentives and Obstacles," September 2015, ISDA Clearing Conference
  • "State of the Derivatives Market and its Impact on Your Fund’s Operations," August 2015, Private Investment Fund Accounting, Operations, & Compliance Forum
  • "Clearing Legal Basics," July 2015, ISDA
  • "The JAC Margin Handbook - A User's Guide and a Blueprint for Revisions," June 2015, FIA Law & Compliance Division Conference on the Regulation of Futures, Derivatives and OTC Products
  • "Futures and Derivatives: Advising the Smartest People in the Room," June 2015, Chicago Bar Association
  • "Assessing FERC and CFTC Compliance and Enforcement: Impact on Market Participants, Energy Risk USA 2015," May 2015
  • "Derivatives Markets: Regulatory Reform Update," March 2015, Chicago Bar Association
  • "Collateral Protection & Margin Segregation," February 2015, FIA/SIFMA Asset Management Derivatives Forum 2015
  • "CFTC Regulatory and Enforcement Update," January 2015, Commodity Markets Council Annual State of the Industry Conference
  • "Regulation: Are We There Yet?," December 2014, FIA Asia Derivatives Conference
  • "International Regulators Meeting," December 2014, Monetary Authority of Singapore International Regulators Meeting
  • "SIFMA Asset Management Group presents: A View from the Buy-Side on Cleared Derivatives," November 2014, FIA Derivatives Expo
  • "Cross-Border Financial Regulation," November 2014, Latin America Federation of Banks
  • "Regulatory Update for Derivatives Operations Professionals," October 2014, SIFMA AMG - AMF Derivatives Operations Committee
  • "CFTC Compliance: Examining the Latest CFTC Guidance and Regulatory Issues," October 2014, Corporate Counsel’s 8th Annual Hedge Fund General Counsel Summit
  • "5 Dodd-Frank Reforms That Keep Energy Attys Up At Night," September 11, 2014, Law360
  • "The Developing Regulation of Swaps: Will it Spark or Stifle Trading?," September 2014, SIFMA AMG
  • "Taking Stock: Where We Are And What Is To Come," September 2014, SIFMA AMG Derivatives Conference
  • "Compliance and Enforcement “Of Counsel” Panel," September 2014, Commodity Markets Council Compliance Conference
  • "Enforcement Roundtable: Preparing for and Responding to Enforcement Actions and How Market Participants Can Ensure Compliance in a Multi-Agency Regulatory Environment," June 2014, ACI’s 9th National Forum on Energy Trading Compliance & Regulatory Enforcement
  • "Fundamentals of Energy Trading Compliance," June 2014, ACI’s 9th National Forum on Energy Trading Compliance & Regulatory Enforcement
  • "Futurization and Swapification: Developments, Trends, and Predictions," June 2014, ACI’s 9th National Forum on Energy Trading Compliance & Regulatory Enforcement
  • "Three, Two, One: The Regulatory Launch of Swaps Trading," May 2014, FIA Law & Compliance Division Conference on the Regulation of Futures, Derivatives and OTC Products
  • "SEF Market Structure - Do We Have a Market and Does It Have a Structure?," May 2014, FIA L&C: 36th Annual Law & Compliance Division Conference on the Regulation of Futures, Derivatives and OTC Products
  • "Chief Compliance Officers: Establishing a Successful Compliance Program at FCMs, Broker-Dealers, Swap Dealers, DCMs and DCOs," January 2014, ACI Derivatives Conference: Reform and Regulation of Derivative Transactions
  • "Position Limits: Adapting to Increased Scrutiny and Assessing What the Future Holds," November 2013, ACI’s 8th National Forum on Energy Trading Compliance & Regulatory Enforcement
  • "Fundamentals of Energy Trading Compliance," November 2013, ACI’s 8th National Forum on Energy Trading Compliance & Regulatory Enforcement
  • "From Theory to Practice: Complying with New CFTC Rules," November 2013, FIA Expo 2013 - 29th Annual Futures and Options Expo
  • "How Regulatory Changes Will Affect Execution and Compliance," October 2013, Oilseed and Grain Trade
  • "Regulatory Environment of the FCM," July 2013, Committee of Chief Risk Officers: Symposium on FCM Clearing and Capital Management 
  • "Dodd-Frank: Finalization, Implementation, and Futurization," December 2012, Chicago Bar Association
  • "Proposed Regulations Implementing Core Principle 9 for Designated Contract Markets," June 2012, CFTC Staff Public Roundtable
  • "A SEF and Exchange Update," May 2012, FIA Law & Compliance Conference
  • "Disruptive Regulatory Practices: The ‘New’ DCM Core Principles," May 2012, FIA Law & Compliance 2012
  • "Available to Trade” Provision for Swap Execution Facilities and Designated Contract Markets," January 2012, CFTC Staff Public Roundtable
Publications
  • "CFTC Enforcement and Regulatory Report -- Outlook for 2018," March 2018, Futures and Derivatives Law Report, Volume 38, Issue 3
  • "CFTC Collaborates With UK in First Non-US Fintech Partnership," February 20, 2018, The National Law Journal
  • "Do Regulators Need a Hand From Congress to Police Virtual Currency Market?," February 9, 2018, The National Law Journal
  • "A Big Step Toward Harmonizing Swap Trading Markets," February 1, 2018, Law360
  • "Industry Pushes CFTC to Prioritise Cross-Border Clarity," August 30, 2017, Risk
  • "A Very Active Year For The CFTC So Far," August 30, 2017, Law360
  • "Final US position limits rule will take ‘at least a year’, "August 25, 2017, Risk
  • "Financial CHOICE Act” Approved by House Financial Services Committee," September 16, 2016, Inside Energy & Environment
  • "Proposed CFTC cybersecurity testing rules for derivatives market infrastructure," July 1, 2016, Journal of Investment Compliance
  • "ESMA lacks resources for MiFID II bond rules," June 9, 2016, The Trade
  • "CFTC and SEC Regulatory Update," June 2016, Chicago Bar Association
  • "CFTC Officials Outline Commission’s Policy Positions at Energy Risk Summit USA 2015," May 15, 2015, Inside Energy & Environment
  • "CFTC Officials Outline Commission’s Policy Positions at Energy Risk Summit USA 2015," May 15, 2015, The National Law Journal
  • "CFTC Position Limits: Recent Congressional and Ongoing CFTC Developments," February 26, 2015, Inside Energy & Environment
  • "CFTC Position Limits: Recent Congressional and Ongoing CFTC Developments," February 26, 2015, The National Law Journal
  • "CFTC Commissioner O’Malia Resigns from the CFTC to join ISDA," July 25, 2014, Inside Energy & Environment
  • "Potential CFTC Regulatory Changes for Energy Market Participants Highlighted by Commissioner Scott O’Malia," April 24, 2014, Inside Energy & Environment
  • "Court's Decision Will Encourage Joint Fundraising Committees," April 3, 2014, NPR
  • "CFTC Whistleblower Office Poised to Make First Monetary Award in 2014, Director Says," April 1, 2014, Bloomberg BNA
  • "FERC and CFTC Enter into Long-Awaited MOUs in Response to Dodd-Frank Act," January 3, 2014, Inside Energy & Environment
  • "President Obama Nominates Sharon Y. Bowen as CFTC Commissioner," December 24, 2013, Inside Energy & Environment
  • "Proceed with Caution - Roles and Regulatory Issues of Derivatives," October 2012, ACC Docket
Note: this list includes engagement completed prior to joining K&L Gates.
  • Representation of ISDA on an analysis of the implications of Brexit on U.S. derivatives market participants, including on the CFTC's cross-border and substituted compliance regime.
  • Advise Tullett Prebon on its initial registration with the CFTC as a non-U.S. swap dealer, including advice on the CFTC’s cross-border guidance and substituted compliance determinations.
  • Advised Coinbase, Inc. on financial services regulations, including the regulatory requirements of the CFTC related to cryptocurrency.
  • Advise multiple swap dealers on compliance with the CFTC’s regulations, including rules related to external business conduct standards and the trading of swaps on SEFs.
  • Representation of ISDA on a white paper related to a principles-based approach to the CFTC's cross-border and substituted compliance regime.
  • Advise multiple derivatives trading platforms on the application of the CFTC’s core principles for swap execution facilities (SEFs) and designated contract markets (DCMs), including the regulatory implications of business requirements and operational and technology functions and the clearing services provided by the CFTC-registered clearing house (DCO).
  • Prepare comment letter for a trade association submission to the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) related to the Principles of Financial Market Infrastructures (PFMIs) that relate to central counterparties (CCPs).
  • Advise multiple derivatives market participants, including financial institutions on compliance with CFTC regulations, including policies and procedures related to futures and swaps trading and clearing.
  • Advised a U.S. investment bank with international offices on the regulatory treatment of derivatives, including the CFTC’s cross-border guidance.
  • Advise multiple derivatives market participants regarding the regulatory requirements for domestic and international derivatives activities, including swap product analysis and swap dealer registration requirements.
  • Conduct real-time reviews of futures and swaps trading activity to verify compliance with internal policies and CFTC regulations, including position limits and other CFTC reporting.
  • Prepare comment letters on behalf of trade associations related to a Joint Audit Committee policy on margining of accounts held by the same beneficial owner as well as the impact of the Basel III leverage ratio on segregated margin.
  • Prepare comment letters on behalf of a leading SEF related to the CFTC’s cybersecurity proposed rules and the swap data standards.
  • Prepare a comment letter on behalf of a proprietary trading firm related to the CFTC’s proposed regulation of algorithmic trading.
  • Represented several individuals in exchange and CFTC enforcement matters related to trade practice violations, failure to supervise, and market manipulation.