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CFTC Enforcement shows its teeth in 2019

♦Market Manipulators are Playing with Fire♦

The Commodity Futures Trading Commission’s Division of Enforcement delivered a strong message to derivatives market participants in its Annual Report released earlier this month: Market misconduct will not be tolerated.

CFTC enforcement has been ramping up in recent years, and the last quarter of fiscal year 2019 (ending Sept. 30) saw a pronounced spike. After Heath Tarbert took over as chairman on July 15, the Commission filed 48 enforcement actions through Sept. 30 — 70% of the actions for all of FY 2019. Highlights from the report:

  • More than $1.32 billion in disgorgement and penalties were obtained, an increase of 39% from FY 2018 and the 4th highest annual total.
  • 16 cases were filed in parallel with criminal authorities, more than in any prior year.
  • Approximately 65% of all cases filed during FY 2019 involved charges of commodities fraud, manipulative conduct or spoofing.

View the CFTC report here.

The best protection against your firm becoming a statistic in next year’s report is a well-educated staff. Our Market Conduct course clarifies the mechanics and consequences of engaging in spoofing, wash sales, market manipulation, pre-arranged trading, noncompetitive trading, front-running, insider trading and other infractions.

To learn more about Market Conduct training, click here or give us a call.