Type: Client Alerts
Aim of the Updated Advisory
In his speech, McDonald stated that the purpose of the CFTC’s new policy is to encourage market participants to work together with regulators to achieve an optimal outcome for all parties. He explained that in order to “achieve optimal deterrence,” the Division “needs[s] the buy-in from the communities [it] police[s].” By achieving buy-in from commodities market participants, the Director hopes to place the Division of Enforcement in a better position to identify wrongdoing after it has occurred, and to deter or prevent future violations. Under the Updated Advisory, self-reporting is no longer under the cooperation umbrella, but rather its own separate category.