CFTC Enforcement Division Drops "Absent Objection" Investigatory Orders

In a reversal of course, the Division of Enforcement of the Commodities Futures Trading Commission ("CFTC"), has confirmed that it will no longer pursue omnibus orders of investigation by means of an "absent objection" procedure, and instead will seek Commission approval before extending such orders.  In a September 26th speech,  CFTC Commissioner Scott O'Malia discussed this reversal in greater detail.  That speech is available here.

Last month, CFTC Commissioner Scott O'Malia, issued a sharply worded objection to the Division's use of the procedure.  Commissioner O'Malia warned that, by using the "absent objection" process, the Enforcement Division could initiate and extend a broadly scoped examination indefinitely, and avoid a full Commission discussion and review of the legal and factual basis for the investigation.  See RS Client Alert:  CFTC Takes an Aggressive Enforcement Tack, which is available here.  "It is imperative for the Commission to issue formal