CFTC's New Enforcement Division: A Refocus on Combating Fraud

U.S. CFTC Acting Chairman: Enforcement Division Restructured, Refocused on Combating Fraud

The U.S. Commodity Futures Trading Commission (CFTC) has announced a restructuring of its enforcement division, aiming to refocus efforts on combating fraud and moving away from "regulation by enforcement." The CFTC's Acting Chairman, Caroline Pham, stated that the agency is committed to improving market integrity, preventing fraud, ensuring consistency, enhancing fairness, and providing due process.

The restructuring involves the creation of two new task forces: the Complex Fraud Task Force, led by Deputy Director Paul Hayeck, focusing on complex fraud and manipulation across all asset classes, and the Retail Fraud and General Enforcement Task Force, led by Deputy Director Charles Marvine, targeting retail fraud and general compliance issues under the Commodity Exchange Act.

This initiative aligns with the CFTC's broader mission to protect market participants and promote transparency in the derivatives market. The agency is committed to working with industry stakeholders to ensure a fair and efficient market.