CFTC defense lawyer

Posted By Max Soni, Uncategorized On October 19, 2020

CFTC defense lawyer

Facing an investigation by the CFTC? You might want to consider hiring a CFTC defense lawyer to help you. The CFTC is a very important entity to be aware of if you trade futures, etc. The agency regulates everything related to exchanges, in OTC markets. Unlike other organizations, the CFTC can place actions against anyone, not just brokers, which means you really must be careful when it comes to this entity.

The CFTC is a government agency which regulates all things related to futures and options markets. Under the 2010 Dodd-Frank act, the CFTC gained increased authority over the swaps markets. The goal of the CFTC is to foster open, and transparent, competition while protecting traders from fraud, and manipulation.

What does the CFTC do?

The CFTC looks at contracts, swap execution facilities, derivates, and more. Their principal job is to stop manipulation schemes which makes markets volatile, and harms innocent traders. The CFTC has the power to enact penalties for violations of the Commodity Exchange act, and other CFTC regulations. The sanctions they enact can include things like fines, bans, and even criminal penalties. Some of the more popular reasons that the CFTC pursues enforcement actions include things like deceptive behavior/manipulation associated with futures and options, ponzi schemes, using deceptive schemes, and engaging in disruptive practices.

If your business conducts business in a manner which falls under the jurisdiction of the CFTC, it is important to be in compliance always. In some instances, it might make sense to speak to one of our attorneys to put safeguards in place so your business doesn’t run afoul of CFTC guidelines.

What’s a CFTC no-action letter?

If you’re not sure about whether your behavior is prohibited, you can ask the agency for guidance. In the event they agency doesn’t see any issues, they’ll issue a no-action letter. This lets you continue with the actions you wish, without worry about potential enforcement actions being taken against you.