The U.S. derivatives watchdog issued the highest number of enforcements in its history in 2020


The U.S. derivatives watchdog issued a record 113 enforcements in 2020, resulting in fines of $ 1.3 billion.

The enforcement division of the Commodity Futures Trading Commission (CFTC) released the numbers backing up the regulator’s claims that it would take a tough stance on market participants under the direction of Chairman and CEO Heath Tarbert.

The number represents the largest number of enforcement actions filed in the history of the CFTC, a significant increase from the previous high of 102 and well above the 30-year average of 58.

The $ 1.3 billion included the highest spoofing penalties in the Commission’s history.

“A strong enforcement program from the CFTC is critical to the proper functioning of our derivatives markets and the health of the American economy as a whole,” said Tarbert. “Without integrity, these markets – markets that price everything from groceries to gasoline to home mortgage rates – just wouldn’t work.

“Thanks to the hard work of the men and women in the Division of Enforcement, the CFTC had a historically productive year. I am very proud of your accomplishments and perseverance during this pandemic – your efforts made a real difference and stopped fraud when Americans were particularly at risk. “

Enforcements included Deutsche Bank’s $ 10 million in June.

In September, the CFTC also announced that Citi would pay a $ 4.5 million fine after millions of audio files were deleted from traders due to a known flaw in system design, despite some of those files from the United States’ derivatives regulator have been summoned.

“This record year shows the continued growth of the CFTC’s enforcement program, as well as the dedication and determination of its employees. Maintaining this historic level of enforcement activity amid a global pandemic says everything you need to know about the hardworking professionals in the Enforcement Department, added Vince McGonagle, deputy director of the Enforcement Department.

“This is also a team that continues to refine their craft – by investing in advances in our data analysis capabilities, expanding our parallel efforts at the federal, state, local and international levels, and providing greater clarity and transparency for market participants. I look forward to working with our team in their continued and unwavering commitment to ensuring the integrity of markets and protecting customers and market participants by diligently pursuing those who violate the law. “


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