regulation
CFTC Issues New Cooperation Policy for Enforcement
The CFTC has released a new policy to encourage cooperation from market participants in enforcement cases, aiming to improve market oversight and compliance.
AS1 NewsSource: cftc.gov
The Commodity Futures Trading Commission (CFTC) announced a new staff advisory that updates its policy on cooperation in enforcement matters. This policy replaces previous guidelines and clarifies how the division evaluates cooperation and self-reporting by market participants. Under the new policy, companies that voluntarily self-report violations, cooperate fully, and undertake timely remediation may receive a declination, meaning they could avoid enforcement action. The policy also details how cooperation credits are awarded, even when a declination is not possible. The goal is to promote prompt compliance, transparency, and fairness in enforcement, especially in cases involving insider trading, fraud, or market abuse. This move aims to strengthen the CFTC’s ability to police derivatives markets and protect investors.
The policy is likely to incentivize better compliance and cooperation from market participants, potentially leading to more effective enforcement actions.