Derivatives, Digital Assets, and AI in Financial Markets

Gary E. Kalbaugh, Partner | Cahill Gordon & Reindel LLP

Gary E. Kalbaugh is a partner in the New York office of Cahill Gordon & Reindel LLP and a nationally recognized leader in commodities, futures, and derivatives law. His practice spans commodities, futures and derivatives, digital assets and emerging technology, and capital markets, and he serves as Special Professor of Law at the Maurice A. Deane School of Law at Hofstra University.

• Education & Credentials

Mr. Kalbaugh earned his LL.M. from the University of Pennsylvania in 1999 and his Bachelor of Civil Laws, with honors, from the National University of Ireland in 1998. He is admitted to practice in New York.

• Recognition & Leadership

Mr. Kalbaugh serves as Co-Chair of the Artificial Intelligence Workstream of the Commodity Futures Trading Commission’s Future of Finance Committee (2024–present) and previously chaired the New York City Bar Association’s Futures and Derivatives Regulation Committee (2018–2021). He is the author of Derivatives Law and Regulation (3rd ed. 2021), serves as Editor-in-Chief of the Futures and Derivatives Law Report, and co-chaired the American Bar Association’s Artificial Intelligence and Derivatives Market conference.

• Professional Involvement

His current and recent committee service includes the Federalist Society’s Financial Services Executive Committee (2021–present) and the Institute of International Bankers’ Legislative and Regulatory Policy Committee (2011–2025). He has written multiple peer-reviewed articles on derivatives, virtual currency, and regulatory topics, and is a proficient coder and application developer in Python and other languages.

• Experience

Before joining Cahill, Mr. Kalbaugh served as Deputy General Counsel and Director at ING, held senior roles at WestLB — including executive director, counsel, and chief U.S. data protection officer — and practiced as an associate at an international law firm. He teaches derivatives law and banking law at Hofstra University and previously served as a lecturer-in-law at Columbia Law School.

David Schwed, Chief Operating Officer | SVRN

David Schwed is the Chief Operating Officer of SVRN and a veteran security and technology executive in digital assets and financial services. His career spans senior leadership roles at Robinhood, BNY Mellon, Galaxy, and Halborn, and his commentary has appeared in Bloomberg, BBC, Fortune, CNBC, and Nasdaq.

• Education & Credentials

Mr. Schwed holds a J.D. from the Maurice A. Deane School of Law at Hofstra University.

• Recognition & Leadership

Mr. Schwed chairs the Cybersecurity Industry Advisory Board at Yeshiva University’s Katz School of Science and Health, where he also serves as Practitioner in Residence and previously served as professor and founding director of the university’s cybersecurity master’s degree program (2019–2021). He has spoken at more than 350 conferences on security, digital assets, and emerging technology.

• Professional Involvement

He serves as a board director at Catholic Guardian Services and the Disaster Accountability Project, advises Dfns, a digital wallet service, and is an early-stage investor in blockchain and fintech startups. His expertise spans blockchain and DLT security, digital asset and DeFi security, cybersecurity and technology risk management, regulatory compliance, and expert witness engagements.

• Experience

Before SVRN, Mr. Schwed served as Chief Information Security Officer, Brokerage & Money, at Robinhood (2024–2025); Chief Operating Officer at Halborn (2022–2024); Global Head of Digital Assets Technology at BNY Mellon (2021–2022); Chief Information Officer at RTI Cable (2019–2021); and Managing Director and Chief Information Security Officer at Galaxy (2018–2019). Earlier, he co-founded MASS Communications — serving as general counsel and chief information officer until its acquisition by Windstream — served as Vice President of Enterprise Threat Management at BNY Mellon (2006–2011), and held earlier roles at Grant Thornton, Citigroup, Marsh McLennan, Merrill Lynch, and Citicorp.

SESSION 1 – The Evolving Regulatory Framework for Derivatives and Digital Assets | 12:00pm – 1:00pm

With comprehensive digital asset market structure legislation before Congress, and the CFTC and SEC actively realigning their jurisdictional approaches, the regulatory perimeter for derivatives and digital assets is being redrawn in real time. This session examines the regulatory framework governing derivatives, futures, commodities, and digital assets as financial products and marketplaces continue to evolve. Drawing on current developments in derivatives regulation and digital asset markets, the session will address the respective roles of the CFTC, SEC, banking regulators, and other authorities, including jurisdictional questions that arise when traditional financial products intersect with cryptocurrencies and blockchain-based instruments. Attorneys will also explore how market participants can assess regulatory status, structure products and activities, and address compliance considerations as the boundaries between traditional derivatives and emerging digital assets continue to develop.

BREAK | 1:00pm – 1:10pm

SESSION 2 – AI in Financial Markets: Derivatives, Trading, Compliance, and Regulatory Risk | 1:10pm – 2:10pm

This session focuses on the rapidly expanding use of artificial intelligence in financial markets and the legal and regulatory issues created when AI is incorporated into trading, derivatives, compliance, risk management, and financial products. Attorneys will examine how existing regulatory frameworks apply to AI-enabled financial activity, where traditional rules may not adequately address emerging technologies, and the potential liability and compliance challenges created by automated decision-making and large language models. The session will also consider regulatory expectations, governance and oversight, explainability, data and model risks, and practical issues for financial institutions deploying AI in regulated environments. Attendees will leave with a practical roadmap for AI governance, documentation, and regulatory engagement.