ABOUT THE CFTC AND ENFORCEMENT (2024)

FAQs

What are the enforcement powers of the CFTC? ›

The CFTC takes enforcement actions against individuals and firms registered with the Commission, those who are engaged in commodity futures and option trading on designated domestic exchanges, and those who improperly market futures and options contracts. Order: Vitol SA, Vitol, Inc.

The CFTC Division of Enforcement investigates and prosecutes alleged violations of the Commodity Exchange Act and Commission regulations.

Under the CEA, the CFTC has brought digital asset enforcement actions for illegally dealing in off-exchange commodities, accepting orders for commodities trades without registering as a futures commission merchant, and failing to implement effective customer identification programs, among other things.

The Commodity Futures Trading Commission (CFTC) protects the public from fraud, manipulation, and abusive practices related to the sale of commodity and financial futures and options, and to fosters open, competitive, and financially sound futures and option markets.

In FY 2023, the CFTC's Division of Enforcement (DOE) filed 96 enforcement actions charging fraud, manipulation, and other significant violations in diverse markets, including digital assets and swaps markets, resulting in over $4.3 billion in penalties, restitution and disgorgement.

Ian McGinley is the Director of the Commodity Futures Trading Commission's Division of Enforcement.

The mission of the Commodity Futures Trading Commission is to promote the integrity, resilience, and vibrancy of the U.S. derivatives markets through sound regulation. In carrying out this mission, the Commission polices the derivatives markets for various abuses and works to ensure the protection of customer funds.

The Commodity Futures Trading Commission (CFTC) is an independent agency of the US government created in 1974 that regulates the U.S. derivatives markets, which includes futures, swaps, and certain kinds of options.

Potential violations DOE investigates include: fraud, false statements to the Commission, disruptive trading practices, misappropriation, use of a manipulative or deceptive device, price manipulation, false reporting, accounting violations, registration and fitness violations, failure to maintain or produce required ...

The SEC and CFTC were created by different laws, have different responsibilities, and use different methods to fulfill those responsibilities. The most basic difference between the two entities is that the SEC regulates the securities market and the CFTC regulates the derivatives market.

Who is required to report to the CFTC? ›

Who Must File a Form 40 – Every person who holds or controls a reportable position must file a CFTC Form 40, Statement of Reporting Trader. (See section 18.04 of the regulations under the Commodity Exchange Act.) Persons include individuals, associations, partnerships, corporations, and trusts.

Bitcoin futures contracts — like other commodity futures contracts such as corn futures, market index futures, or gold futures — are regulated by the CFTC and must trade on CFTC-regulated exchanges. Bitcoin and bitcoin futures can be highly volatile.

The division takes civil enforcement actions against individuals and firms registered with the Commission, those who are engaged in trading derivatives products on designated domestic exchanges, and those who improperly market futures, options, swaps, and commodity contracts, including various digital currencies.

The CFTC organization consists of the offices of the Chairman and Commissioners as well as the agency's 14 operating divisions and offices. The CFTC organization is led by the Chairman in his or her capacity as the agency's Chief Executive.

Commissioner Rostin Behnam | CFTC.

The Bureau may enforce the law by filing an action in federal district court or by initiating an administrative adjudication proceeding. Administrative proceedings are conducted by an Administrative Law Judge, who holds hearings and issues a recommended decision.

The FCA has administrative powers to limit or withdraw an individual or firm's ability to operate in the financial services sector. They can also freeze assets, seek restitution, or bring criminal prosecutions.

The Commission and its Enforcement Bureau enforce the Communications Act and the Commission's rules and orders in two primary ways: (1) by initiating investigations, and taking appropriate action if violations are found; and (2) by resolving disputes between industry participants either through mediation and settlement ...