Commodities, Futures & Derivatives

Looking Forward

For the first time since 2014, the CFTC now has a full slate of commissioners, which will advance many of Chairman Giancarlo's initiatives, including Project KISS, position limits, and fintech.  The CFTC's Division of Enforcement reached an all-time high in the number of cases alleging manipulative conduct, many of which involved the disruptive trading practice commonly known as "spoofing," which will likely continue.  As virtual currencies are on track to become another asset class, it is likely that investigations by the Division of Enforcement will expand beyond fraud and look into other potentially violative conduct, such as spoofing, wash trades, registration and recordkeeping, involving virtual currencies.  As the CFTC's budget woes continue, however, actions by the NFA and exchanges, along with continued coordination with other state and federal agencies, may see continued growth.