Commodity Futures Trading Commission enforcers intend to push for heavier fines, particularly on repeat offenders, and will increasingly eschew settlements that allow firms to avoid admitting fault, the financial regulator’s enforcement unit said Tuesday.
The CFTC, which polices derivatives markets, will crack down in particular on repeat offenders, it said in a memo to enforcement staff. Recidivist firms can expect to see monitors put in place to oversee compliance as part of their settlements, it said.
The use of what are known as no-admit, no-deny settlements will also be dialed back, the CFTC said. The moves are intended to deter misconduct by making it more costly for firms that violate the law.
Source: U.S. Derivatives Regulator Plans Tougher Enforcement Approach – WSJ
