We have previously provided updates1 on the Navinder Singh Sarao case, pending in the U.S. District Court for the Northern District of Illinois. After being charged in February 2015
Continue Reading The US Attorney, CFTC, and Navinder Sarao
Douglas M. Grom
CFTC Picking Up the Pace of Whistleblower Program
Both the SEC and the CFTC were authorized by the Dodd-Frank Act to reward certain persons for providing information that leads to an enforcement action. Prompted by such a “whistleblower’s” notification, the CFTC investigated and initiated a widely-reported civil enforcement action against a trader. Under the CFTC’s implementation of the whistleblower program, for information that leads to monetary sanctions in excess of $1 million, whistleblowers can be paid between 10% and 30% of the sanction.
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CFTC Continues to Exercise Expanded Enforcement Authority Granted Under Dodd-Frank
After enactment of the Dodd-Frank Wall Street Reform and Customer Protection Act of 2010 (“Dodd-Frank”), Commodity Futures Trading Commission (“CFTC”) expanded its enforcement authority outside the traditional realm of exchange-traded…
Continue Reading CFTC Continues to Exercise Expanded Enforcement Authority Granted Under Dodd-Frank
Spoofing Squarely in the Crosshairs
In recent weeks, a number of developments related to trade “spoofing” should indicate to market participants, in no uncertain terms, that regulators remain vigilant about potentially improper trade practices. “Spoofing” is generally defined as the entry of purchase or sale orders in the market without the intent that they be executed, but rather with the intent to affect the price of commodities to benefit the trader. The Dodd-Frank Act revised the Commodity Exchange Act to add a provision that specifically prohibits spoofing and, in September 2014, the Chicago Mercantile Exchange adopted a specific rule regarding such conduct. In connection with its new Rule 575, CME has also outlined a number of circumstantial hallmarks of spoofing, and closely monitors activity in its trading platform to take action against spoofing when necessary. Other exchanges have followed suit.
Continue Reading Spoofing Squarely in the Crosshairs