The CFTC Division of Market Oversight ("Division") released the results of a rule enforcement review of ICE Futures U.S. ("ICE"), and found that with the exception of one deficiency, ICE has an adequate trade practice surveillance program.
The review – which covered a one-year target period – evaluated ICE's compliance with the elements of Designated Contract Market Core Principles 2 ("Compliance with Rules") and 12 ("Protection of Markets and Market Participants"). The Division made recommendations to ICE to help improve its compliance program in the following three areas:
- proactive reviews for trade practice violations;
- ICE's automated trade surveillance system; and
- trade practice investigations.
According to the report, ICE was deficient with respect to its compliance with CFTC Rule 38.158(b) ("Investigations and Investigation Reports"), which requires the completion of investigations in one year or less.
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