CFTC Enforcement Actions Declined In 2017
The CFTC announced its enforcement results for fiscal 2017. During the last fiscal year the agency brought 49 enforcement related actions centered on manipulation, spoofing and other charges. The CFTC also obtained orders totaling $412,726,307 in restitution, disgorgement and penalties. That amount included $333,830,145 in civil monetary penalties and $78,896,162 million in restitution and disgorgement orders.
The agency sought during the year to enhance the Enforcement program. New rules and procedures were put in place to enhance whistleblower protections and further incentivize them. The market surveillance unit was also realigned under the Division of Enforcement. In addition the Division issued new cooperation advisories to bring its program into line with those of other federal agencies.
The actions brought last fiscal year by the agency break-down into the following categories:
12 Manipulation, false reporting, disruptive trading
6 Protection of customer funds, supervision and financial integrity
20 Retail fraud
1 Illegal off-exchange contracts, failure to register
3 Other trade practice
7 Reporting, record keeping
The results for fiscal 2017 contrast sharply with those of fiscal 2016. In that year the CFTC brought 68 cases and obtained orders totaling about $1.29 billion in restitution, disgorgement and penalties. The agency also paid out a record $10 million to whistleblowers.
The actions brought in fiscal 2016 break-down into the following categories:
4 Manipulation, false reporting, disruptive trading
8 Protection of customer funds, supervision and financial integrity
30 Retail fraud
8 Illegal off-exchange contracts, failure to register
4 Other trade practice
9 Reporting, record keeping
4 Misappropriation of material non-public information, employee misconduct
1 Statutory disqualification
Program: The Fourth Annual Dorsey Federal Enforcement Forum will be held on December 6, 2017. There will be panel discussions and presentation on EPA enforcement, SEC enforcement, investment advisers, international sanctions, FinTec, and FBI international corruption investigations, followed by a holiday party. Attend in person, listen on the web or watch a live stream; CLE available. For a detailed program and free registration click here.