CFTC Shifts Focus to Fraud Prevention and Victim Support
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Caroline D. Pham, the temporary leader of the Commodity Futures Trading Commission (CFTC), revealed that the agency had changed how it fights cheating in markets. She explained that the Enforcement Division had been rearranged to help people hurt by fraud and to stop using rules in unfair ways.
She said the CFTC wanted to focus more on people who lost money because of dishonest traders. She also said the new structure would help the agency work better.
CFTC Strengthens Enforcement To Protect Market Integrity And Public Trust
The changes would allow the CFTC to find more dishonest traders and stop punishing honest people. She praised the Enforcement Division for keeping the agency’s promise to protect the public.
Brian Young, who temporarily leads the Enforcement Division, said dishonest traders kept finding new ways to trick people and break market rules. He said the new plan would help the team work better and faster to help people who lost money. He also said it would help people trust the markets.
The old teams in the Enforcement group were replaced with two new ones. One would look at tricky cheating cases. The other would focus on cheating that hurts everyday people and other rule-breaking.
The team for tricky cheating would check reports, look at bad actions, and go to court if needed. Paul Hayeck, a leader at the CFTC, would guide this work.
The other team would stop cheating that harms regular traders and take care of other market rule-breaking. Charles Marvine, another leader, would guide this work.
CFTC Enhances Oversight To Ensure Fair And Transparent Markets
Pham said the new plan would help the CFTC use its workers and tools the right way to stop bad actions and cheating. She also said it would help make sure the rules are used fairly and carefully.
She reminded everyone that anyone who saw suspicious market actions could report them to the CFTC. People could call a free hotline or send reports online.
The CFTC is a U.S. government group that started in 1974. It watches over the country’s markets, like futures, swaps, and special options.
The Commodity Exchange Act (CEA) says no one can cheat in trading futures, swaps, or other deals. The CFTC wants to make sure these markets are fair, safe, and work well.
Following the 2007–08 financial crisis and the passage of the Dodd–Frank Wall Street Reform and Consumer Protection Act in 2010, the CFTC has been working to increase transparency and improve oversight of the multitrillion-dollar swaps market.
