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ARTICLE · 13 MARCH 2025

Client Alert: CFTC Issues New Enforcement Advisory Aiming To Incentivize Self-Reporting And Cooperation

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On February 25, 2025, the Division of Enforcement (the "Division") of the Commodity Futures Trading Commission (the "CFTC" or "Commission") issued an Enforcement Advisory which quantifies the monetary credit that entities can expect to receive for self-reporting and cooperation in connection with Division inquiries.

United StatesFinance and Banking
Thomas E. Quinn
Thomas E. Quinn
Lawrence McMahon
Lawrence McMahon
Gregory Boyle
Gregory Boyle
Harris Kay
Harris Kay

On February 25, 2025, the Division of Enforcement (the "Division") of the Commodity Futures Trading Commission (the "CFTC" or "Commission") issued an Enforcement Advisory which quantifies the monetary credit that entities can expect to receive for self-reporting and cooperation in connection with Division inquiries. The Commission asserts that the Advisory's newly announced system will conserve enforcement resources by incentivizing more self-reporting and cooperation, but it is not clear that market participants will see meaningful changes when negotiating a monetary settlement with Division staff.

The current political climate also gives rise to additional considerations. On one hand, the Advisory may provide some greater insight into how self-reporting and cooperation will be rewarded during settlement negotiations with the Commission. However, market participants are facing a regulator that has signaled a reduced appetite for aggressive enforcement,

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