CFTC Charges Regulatory Penalties of $1.3 Billion in 2019

The United States CFTC received almost 40% more regulatory penalties and payments in fiscal 2019. But the total enforcement actions decreased, the regulator said on Monday.

26 November, 2019 | AtoZ Markets – The Commodity Futures Trading Commission CFTC obtained over $ 1.3 billion in monetary relief during the fiscal year ended September 30, from 69 enforcement actions. It is an increase of 39 percent over the previous fiscal year. And it is the fourth-highest total in its history, according to the annual report of the agency officials.

CFTC Regulatory Penalties 2019

Most of the total amount came from disgorgement and restitution, and civil monetary penalties amounted to $ 205.6 million. This is down from $ 897 million the year before and the lowest since 2010, according to CFTC data.

Total activity decreased from the previous year’s 83, but remained slightly above the last five-year average of 67.5, according to the report. The year was a transition year for the agency, with Heath P. Tarbert taking over the agency in mid-July. The CFTC said it filed 48 law enforcement measures after Tarbert started playing this role.

“It is our response to those who break the rules,” said Tarbert in a statement on the report. “A strong enforcement program aims to preserve market integrity, protect consumers, and prevent misconduct.” The 2019 tally included the second largest number of CFTC manipulative and spoofing cases in a given year, after 2018. The agency created a task force on spoofing in 2018. Nearly two-thirds of the actions involved commodity fraud, manipulative conduct, misrepresentation, or spoofing.

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CFTC’s Most Filed Cases

James McDonald is the director of CFTC Enforcement. He said that the breadth and depth of law enforcement activity in fiscal year 2019 is reflected in several facts. The filed cases involved some of the most important frauds, manipulations, and spoofing in the history of the organization.

This included lawsuits against Societe Generale International Limited, the US unit of HSBC, and a spoofing case against a former JP Morgan precious metals trader. The CFTC filed a record 16 files in parallel with the criminal authorities in fiscal year 2019.

However, the organization received 117 claims for whistleblowing awards in 2019, the same as the previous year. The CFTC’s five awards were also the same level as in 2018. The amount of these awards was much lower, totaling $ 15.4 million compared to $ 75.6 million in 2018.

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