- The CFTC replaced prior guidance with a new framework for self-reporting and cooperation credit.
- Firms may qualify for reduced penalties or declinations through remediation and full cooperation.
- Chairman Mike Selig said the policy strengthens enforcement against fraud and market manipulation.
The Commodity Futures Trading Commission introduced a new enforcement cooperation policy on Wednesday as Chairman Mike Selig pushed for faster compliance across U.S. markets. The advisory, released by the Division of Enforcement, replaces previous guidance and outlines how firms can qualify for reduced penalties or possible declinations through voluntary self-reporting, remediation, and cooperation during investigations.
New Policy Replaces Prior Guidance
According to the CFTC, the advisory now serves as the agency’s primary framework for evaluating cooperation and self-reporting efforts. The Division of Enforcement said the updated policy supersedes all previous advisories tied to cooperation credit.
Notably, the framework creates a structured path toward potential declinations. Respondents may qualify if they voluntarily self-report violations, fully cooperate, provide restitution, and complete timely remediation efforts.
However, the policy also explains how the division may award reduced cooperation credit when firms fail to meet declination standards. The agency said aggravating circumstances could still prevent respondents from receiving full consideration.
Mike Selig said the initiative aims to strengthen oversight against fraud, insider trading, and market abuse. He added that the policy should improve consistency and transparency throughout enforcement proceedings.
Enforcement Division Outlines Cooperation Standards
Meanwhile, Enforcement Director David Miller said the agency designed the policy to simplify how cooperation credit works across investigations. According to Miller, the advisory clearly explains what the division expects from firms seeking consideration.
He also stated that the guidance gives market participants a better understanding of the enforcement process before investigations advance further. Additionally, Miller described the policy as another tool for combating manipulation and abusive trading practices.
The advisory specifically encourages prompt compliance from firms operating in regulated derivatives and commodities markets. The agency also emphasized that cooperation alone does not automatically guarantee declinations.
Focus Remains on Market Misconduct
Meanwhile, the CFTC reiterated that enforcement against fraud and market misconduct remains a central priority. The agency said the updated framework supports more efficient investigations while encouraging earlier disclosures from market participants.
According to the advisory, respondents seeking credit must provide meaningful assistance throughout investigations. That includes preserving records, supplying accurate information, and supporting remediation efforts tied to misconduct findings.
