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When Regulators Come Knocking

By February 20, 2018October 7th, 2021No Comments

♦CFTC Stance: “No Pause, No Letup”♦

In 2017, the Commodity Futures Trading Commission (CFTC) collected total monetary sanctions of more than $413 million. And according to CFTC Chairman Christopher Giancarlo, that aggressive pace is not about to abate. At an industry conference, Giancarlo said there will be “…no pause, let up or reduction… to enforce the law and punish wrongdoing.”

A look at the breakdown of violation categories indicates that market conduct issues account for nearly a third of the enforcement actions brought. CFTC bundles those categories as “Manipulation, Attempted Manipulation, False Reporting, Disruptive Trading” and “Wash Trades, Fictitious Trades, Position Limits, Trading Ahead.”

So the question is twofold: “How to respond” when regulatory enforcement comes knocking, and “how to prevent” them from knocking in the first place?

The “how to respond” question is distilled into eight essential steps in a recent article by partners Mary Hansen and James Lundy of the law firm Drinker Biddle & Reath LLP. It’s a roadmap for dealing proactively with CFTC’s broad investigative powers. Click here for direct link to article.

The “how to prevent” question is answered by the Exchange Analytics Market Conduct course. This course covers all the items in the violation categories above (and much more), and was designed specifically to teach traders how to avoid violations and when to seek guidance. Learn more.