Regulatory Review for Week Ended September 29, 2023
This week’s BR Derivatives Report Regulatory Review highlights several regulatory actions issued by the U.S. Commodity Futures Trading Commission (“CFTC”).
1) CFTC ANNOUNCEMENT ISSUED 9/25/2023
CFTC Press Release Number 8783-23
Type of Market Participant Involved
All market participants (registrants and non-registrants) and any interested parties, including financial educators, innovators, and regulators
Summary
The Commodity Futures Trading Commission’s Office of Customer Education and Outreach (“OCEO”) and Office of Technology Innovation (“OTI”) announced Technology and Fraud: Stopping Scams in a Digital World, a virtual event on Wednesday, October 4, at 12:00 p.m. Eastern, as part of World Investor Week (October 2–9).
OCEO is dedicated to helping customers protect themselves from fraud or violations of the Commodity Exchange Act (“CEA”) through the research and development of effective financial education materials and initiatives.
OTI serves as the CFTC’s financial technology innovation hub, driving change and enhancing knowledge through innovation, consulting/collaboration, and education.
Commentary
Announcements like these rarely occur in a regulatory vacuum, and this announcement was no exception. It was followed by no less than 10 separate enforcement actions related to fraud and customer protection issues:
CFTC Charges Eight Entities for Fraudulently Claiming CFTC Registration
CFTC Charges Unregistered Pool Operator and its Owner with $7.1 Million Fraud
CFTC Charges Florida Man with Forex and Binary Options Fraud and Misappropriation
Bottom Line
This week’s flurry of enforcement activity is a good reminder that one of the enumerated statutory purposes of the CEA is to protect all market participants from fraudulent or other abusive sales practices and misuses of customer assets. 7 U.S.C. § 5
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