CFTC Awards More Than $2 Million to Whistleblower

CFTC Awards More Than $2 Million to Whistleblower

The Commodity Futures Trading Commission (“CFTC”) announced a whistleblower award totaling more than $2 million to be paid to an individual whistleblower. The CFTC granted the whistleblower’s award application for both a CFTC action and a related action brought by another federal regulator. CFTC’s Whistleblower Program was created under Section 748 of the Dodd-Frank Wall

CFTC Announces 2019 Examination Priorities – A First for the Commission

CFTC Announces 2019 Examination Priorities – A First for the Commission

For the first time, the Commodity Futures Trading Commission (CFTC) announced 2019 Examination Priorities for registrants of the Division of Market Oversight (DMO), Division of Swap Dealer & Intermediary Oversight (DSIO), and Division of Clearing & Risk (DCR). DMO’s Compliance Branch’s 2019 Examination Priorities include: (1) cryptocurrency surveillance practices (2) surveillance for disruptive trading; (3)

CFTC Fails to Prove Market Manipluation in CFTC v. DRW Investments, LLC

CFTC Fails to Prove Market Manipluation in CFTC v. DRW Investments, LLC

In a recent decision, a Southern District of New York court found the Commodity Futures Trading Commission (“CFTC”) failed to prove DRW Investments, LLC (“DRW”) manipulated the price of an exchange-traded interest rate swap futures contract known as the IDEX USD Three-Month Interest Rate Swap Futures Contract. The CFTC alleged that DRW placed bids during

Morgan Stanley Fined $10 Million by FINRA for AML Violations

Morgan Stanley Fined $10 Million by FINRA for AML Violations

FINRA fined Morgan Stanly $10 million after finding it failed to properly supervise an anti-money laundering (“AML”) program over five years because of three major issues: First, Morgan Stanley’s automated AML surveillance system failed to receive data from several systems. Second, it failed to devote sufficient resources to review alerts generated by its automated AML surveillance

CFTC Gets Default in $11 Million CPO Fraud Case

CFTC Gets Default in $11 Million CPO Fraud Case

The Commodity Futures Trading Commission (CFTC) recently announced an Order of default judgment and permanent injunction has been issued against defendants Capital Growth Group Associates and Cobra Development Group in connection with two separate fraudulent commodity pool trading schemes.  The default was granted in the U.S. District Court for the Central District of California, and

SEC: Cybersecurity Procedures Must be Reasonably Designed to Fit Specific Business Models

SEC: Cybersecurity Procedures Must be Reasonably Designed to Fit Specific Business Models

The Securities and Exchange Commission recently announced that a Des Moines-based broker-dealer and investment adviser has agreed to pay $1 million to settle charges related to its failures in cybersecurity policies and procedures surrounding a cyber intrusion that compromised personal information of thousands of customers. This is the latest SEC action demonstrating that cybersecurity must be tailored to the practices of the business.

The SEC charged Voya Financial Advisors Inc. (VFA) with violating the Safeguards Rule and the Identity Theft Red Flags Rule, which are designed to protect confidential customer information and protect customers from the risk of identity theft.  This is the first SEC enforcement action charging violations of the Identity Theft Red Flags Rule.

2018 Update: CFTC Sues Another “Trading Strategy and Systems” Scheme

2018 Update: CFTC Sues Another “Trading Strategy and Systems” Scheme

June 25, 2018 Update: The CFTC continued its actions against a Trading Strategy and Systems Scheme today, with a Consent and Default Order against Open Range Trading LLC (Open Range) with fraudulently solicited clients and prospective clients to subscribe to a commodity futures day-trading system that generated buy and sell trading signals in various futures markets,

CFTC Dealt Blow in Retail Commodity Transactions Case

CFTC Dealt Blow in Retail Commodity Transactions Case

On Tuesday, a Central District of California court dismissed the CFTC’s complaint against Monex Credit Company, et al., 17-01868, rejecting the CFTC’s controversial “actual delivery” argument set forth in CFTC v. Hunter Wise Commodities, LLC, 749 F3d 967, 970 (11th Cir. 2014). The CFTC, argued that Monex allegedly failed to actually deliver precious metals to its customers because the