CFTC Provides Clarifying Guidance On Material Violations Regarding Self-Reporting, Cooperation, And Remediation System

Key Takeaways

• On April 17, the Commodity Futures Trading Commission's (CFTC) Market Participants Division, the Division of Clearing and Risk, and the Division of Market Oversight (together, the Operating Divisions) issued an advisory to provide guidance on criteria the Operating Divisions will use to determine whether to refer a self-reported violation to the Division of Enforcement (DOE).
• Under the advisory, the Operating Divisions can refer material supervision and non-compliance issues to the DOE. Non-material supervision or compliance issues will be handled by the Operating Divisions and addressed directly with the registrant or registered entity.
• The guidance follows the DOE's February advisory which announced that registrants and registered entities who self-report violations to an Operating Division can be eligible for mitigation credit.