Dodd-Frank.com

2014 CFTC Enforcement Report – Another Year of Record Sanctions

By | December 30, 2014

On November 6, 2014, the Commodity Futures Trading Commission (CFTC) released its 2014 fiscal year Enforcement Report.  In 2014, the CFTC continued its aggressive enforcement of the commodities market, in comparison to prior years.  The CFTC recorded another record year of sanctions — $3.27 billion – against companies and individuals.  Over the previous two years, sanctions total over $5 billion which is “more than the total sanctions imposed during the previous 10 fiscal years combined.”  Press Release at 1.

Stinson Leonard Street LLP reported on several of the 2014 violations in the Dodd-Frank blog, including the Moncada “spoofing” violation (entering into a trade with no intention of executing the trade) and the Shak “banging the close” violation (rapid trading at close with the intent to set the closing price.)  We will continue to follow in 2015 CFTC Enforcement actions for wash trades (offsetting trades with no economic risks, often to receive rebates or other incentives), exceeding Commission-approved speculative limits for certain commodities, and making false statements to the CFTC and its staff.

Contact Steve Quinlivan for more information.

Topics: 
Broker-Dealer, Energy