United States: 2013 CFTC Enforcement Year-in-Review, And A Look Forward

In recent years, the Commodity Futures Trading Commission ("CFTC" or "Commission") has brought cases of ever-greater significance, against respondents with greater name recognition, for consistently increasing civil monetary penalties. We expect these trends to continue despite budget or other resource constraints the Commission may face in 2014. The Commission will also seek to flex its new enforcement authority under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 ("Dodd-Frank" or "the Act").1 That being said, we do not expect the Commission to lessen its traditional focus on enforcement actions concerning market integrity. To the contrary, the Commission recently appointed a Division of Enforcement alumnus as Director of the Division of Market Oversight, suggesting that the Commission remains committed to aggressive market integrity oversight. Finally, as it completes Dodd-Frank implementation, the Commission will likely focus greater attention on market structure issues, including high frequency trading.

2013: Record Sanctions, Budget Challenges, and a Changing of the Guard

By October 2013, the Commission had assessed a record $1.7 billion in monetary sanctions, mainly from fines collected through LIBOR manipulation settlements.2 Thus, as of October, the Commission had collected more than eight times its reported 2013 total budget of roughly $200 million, far in excess of historical averages.3

However, the Commission commenced somewhat fewer enforcement actions in 2013 than in 2012, though the total remains at historically high levels.4 This trend mirrors slowdowns at other financial regulatory agencies.5 One reason may be budget constraints: Commission leaders and President Obama have criticized the CFTC's budget as being far too low given the agency's responsibility for regulating hundreds of trillions of dollars in transactions.6

These budget concerns as well as leadership turnover have created some uncertainty about the agency's 2014 enforcement initiatives.7 In early January 2014, the CFTC received less than a 10% budget increase to $215 million—$100 million below President Obama's request to lawmakers.8 Further, with the departure of Chairman Gary Gensler and the announced departure of Commissioner Bart Chilton, both of whom have been considered aggressive supporters of expanding the agency's authority, there is, at this point, no clear indication of the Commission's enforcement or regulatory priorities in 2014. While we expect that the Commission's budget issues and personnel turnover may have a marginal effect on enforcement activity, we also expect the Commission to continue aggressively pursuing high-profile matters, including many in the fraud and manipulation space, possibly in coordination with other enforcement authorities. We have seen the signs of this continued enforcement activity in our own practice.

Enforcement's Substantive Areas of Focus in 2013—A Look Back

In 2013, CFTC enforcement actions focused on several substantive areas, which we anticipate will remain in the spotlight in 2014. These include the following:

Benchmark Manipulation

The CFTC's most visible 2013 enforcement activity stemmed from widespread investigations into manipulation of benchmark interest rates by major financial institutions (e.g., LIBOR, EURIBOR). In its most recent such settlement, the CFTC ordered Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. ("Rabobank") to pay a $475 million civil monetary penalty to settle allegations that the bank submitted false information to manipulate the LIBOR and the EURIBOR.9 The Commission has pursued similar actions against several other major financial institutions and amassed penalties totaling more than $1 billion.10 Because of the public attention paid to these investigations, and the precedents set by the record penalties levied, we can expect CFTC Enforcement and other regulators to continue to aggressively pursue potential benchmark manipulation matters in 2014.11
Customer Funds Violations

As a result of the MF Global, Inc. and the Peregrine Financial Group, Inc. ("PFG") episodes involving the loss of hundreds of millions of customer funds that had been held in segregated accounts, the CFTC has made increasing the protection of customer funds a top enforcement and regulatory priority. This increased enforcement priority was exhibited in 2013 in the high profile actions brought against MF Global, its CEO Jon Corzine and Assistant Treasurer Edith O'Brien, PFG, PFG's owner, accountant, and bank.

Although MF Global has settled all charges against it,12 former CEO Corzine and Treasurer O'Brien are contesting the charges brought against them.13 As noted above, in the PFG matter,14 the CFTC also pursued separate enforcement actions against ancillary participants that had responsibilities with respect to customer funds, including PFG's accountant and PFG's bank, U.S. Bank National Association ("U.S. Bank").15 Then-Enforcement Director David Meister stated regarding the U.S. Bank action, "[a]s should be apparent from today's action, we will seek to hold a bank to account if it falls short on complying with customer fund protection obligations. Wasendorf stole vast sums of customer money, but his crimes do not excuse U.S. Bank from its own independent responsibilities."16

In addition to these high-profile actions, the CFTC brought actions against more than a dozen Futures Commission Merchants for violating segregation, secured, and net capital rules and related supervision and reporting failures.17 The volume of these cases is instructive for market participants looking ahead to 2014—it is critical for all parties to relevant transactions to review internal processes and to take steps to ensure that conduct is consistent with anti-misappropriation controls and customer fund segregation requirements.

New Enforcement Authority Under Dodd-Frank

Dodd-Frank ushered in sweeping expansions to the jurisdiction and enforcement powers of the CFTC.18 We expect to see continued focus on these areas as the agency exercises its new authority with new investigations and new theories of liability in 2014. Areas to watch include the agency's expanded jurisdiction over market participants' conduct (e.g., false statements, manipulation, and disruptive trading), the location of the conduct (e.g., cross-border activities and non-US market participants) and products (e.g., swaps and retail commodity transactions).

False Statements

Dodd-Frank expanded the CFTC's authority to pursue any false "statement of material fact made to the Commission in any context."19 Under this new authority, the CFTC has assessed penalties for false statements: in written responses to CFTC Enforcement inquiries and in false reports to the National Futures Association ("NFA");20 concerning customer segregated funds holdings in an NFA audit and in filings with the Commission;21 and in interviews during an enforcement investigation.22 CFTC Division of Enforcement Director Gretchen Lowe recently commented: "Witnesses in CFTC investigations must tell the truth. If they do not, the CFTC will not hesitate to take action to enforce [ ] Dodd-Frank's prohibition against providing false or misleading information and impose sanctions."23

Anti-Manipulation Authority—Rule 180.1

Section 753 of Dodd-Frank amended the Commodity Exchange Act § 6(c) to give the CFTC anti-manipulation enforcement authority similar to that of the SEC under § 10(b) of the Securities Exchange Act.24 In adopting Rule 180.1, which was in turn modeled after SEC Rule 10b-5, the Commission announced that it "will be guided, but not controlled, by the substantial body of judicial precedent applying the comparable language of SEC Rule 10b-5."25

Rule 180.1 is quite broad, covering not only manipulation, but attempts to manipulate.26 The rule also reaches not only conduct in connection with a purchase or sale, but also prohibits deceptive devices or contrivances in connection with any swap, cash contract, or futures contract.27 Thus, the new rule applies to conduct or attempted conduct in connection with activities well beyond the purchase or sale of a covered instrument (e.g., all of the payment and other obligations under a swap). While the CFTC may use the new rule to pursue more types of fraud and manipulation actions, the similarity between the rules also provides respondents with a large body of precedent from which to draw arguments and potential defenses.

In connection with the CFTC's announcement in October 2013 of an enforcement action under Rule 180.1, then-Enforcement Director Meister emphasized how the Commission is "now better armed than ever" with Rule 180.1, which he described as "a powerful new tool."28

Ponzi Schemes: We can expect the CFTC to continue to pursue commodities-related Ponzi schemes under the new anti-fraud and anti-manipulation authority found in Rule 180.1. Relying on this new authority, the CFTC obtained a consent order requiring a $23 million civil monetary penalty and $11,530,000 of restitution to defrauded investors against Atlantic Bullion & Coin and its owner for operating a multi-million dollar silver bullion Ponzi scheme.29
Insider Trading: The CFTC in adopting Rule 180.1 stated that the Rule could reach insider trading "depending on the facts and circumstances."30 While the CFTC was careful to recognize in the adopting release that derivative markets have operated and will continue to operate in a way that allows for market participants to trade on the basis of lawfully obtained material nonpublic information, the CFTC specifically recognized a variation of the "misappropriation" theory of insider trading.31 It explained that trading on the basis of material nonpublic information "in breach of a pre-existing duty (established by another law or rule, or agreement, understanding, or some other source), or by trading on the basis of material nonpublic information that was obtained through fraud or deception" would violate the rule.32 For example, an employee would violate Rule 180.1 by trading swaps, commodities, or futures based on material nonpublic information learned through his or her employment if the employee's employment contract prohibited trading based on such information, thereby creating a pre-existing duty. We expect that insider trading actions based on employee misappropriation of information will be an area of increased focus for the CFTC going forward.33

Anti-Disruptive Trading Practices

Dodd-Frank specifically delineated and prohibited certain types of "disruptive" trading practices.34 In May 2013, the CFTC issued interpretive guidance as to the meaning of these prohibitions.35 In its first case under the CEA's prohibition against "spoofing"—bidding or offering with the intent to cancel the bid or offer before execution—the CFTC obtained $2.8 million in civil penalties and disgorgement against Panther Energy Trading LLC and its principal for exploiting the false impression of trading interest created by the placement and immediate cancellation of large bids and offers in futures contracts.36 The Enforcement Division has expressed its intention to "police the market for this type of activity" and "bring charges against those who attempt to illegally game prices for their own advantage."37
Swaps Jurisdiction

Under Title VII, the Commission, traditionally responsible for regulating futures and options transactions, will now also regulate the majority of the swaps market.38 This expansion will subject a new subset of trading activities to CFTC scrutiny.

Retail Commodity Transactions Jurisdiction

Dodd-Frank expanded the CFTC's jurisdiction to include retail commodity transactions.39 In 2013, the CFTC obtained a preliminary injunction40 against Hunter Wise Commodities, LLC and eighteen other defendants, stemming from the CFTC's December 2012 complaint41 charging the defendants with operating a multi-million dollar fraudulent precious metals scheme by, inter alia, illegally offering off-exchange investments in physical metals to retail consumers.

Looking Ahead to 2014Other Considerations

Based on recent comments and activities by the Commission and its current and former officials, other significant issues to watch in 2014 include the following:

High Frequency Trading

The CFTC announced in the fall of 2013 that it would devote significant attention to high frequency trading as it relates to the futures and derivatives markets. On September 12, 2013, the CFTC published a concept release regarding automated trading systems (ATSs) and risk controls (the "Concept Release"), in the wake of several disruptive events associated with automated trading.42 According to the Concept Release, which focuses particularly on the growing presence of ATSs and high frequency trading, the CFTC is interested in cataloguing current practices and obtaining comment on whether it should impose, through additional rulemaking, "measures intended to reduce the likelihood of market disrupting events and mitigate their impact when they occur."43 Market participants involved in high frequency trading should monitor any subsequent rule proposals in this area as the CFTC may consider requiring firms to institute new pre- and post-trade measures and controls, system safeguards, and other protections.44 Such rulemaking could later result in enforcement actions to the extent a firm's controls are deemed insufficient to prevent significant market disruptions.
Inter-Agency Coordination and Parallel Criminal Proceedings

The Commission has prioritized coordination with criminal authorities, with a reported "93% of the CFTC's major fraud cases" having a parallel criminal case.45 Such coordination may enable the Commission to focus its budget-constrained efforts on actions against institutions, while other authorities pursue criminal investigations against individuals.46 Indeed, the recent Rabobank investigation was conducted in concert with the DOJ, the Federal Bureau of Investigation, and Dutch, Japanese, and UK agencies.47 The $475 million civil penalty came in addition to a $325 million criminal penalty announced the same day by the DOJ,48 and the DOJ has subsequently filed criminal charges against three Rabobank traders.49

Admissions of Wrongdoing

Although the CFTC has secured admissions in certain notable cases in 2013,50 it remains unclear whether this will become the CFTC's standard procedure. It seems unlikely that the CFTC will adopt this as a uniform policy going forward. As former Enforcement Director Meister noted, the goals of the CFTC are still served by no-admit, no-deny settlements because "there is a degree of responsibility ... even when the defendant doesn't explicitly admit the underlying facts."51 However, inter-agency coordination in high-profile matters raises a question as to whether the CFTC will follow the SEC's new pursuit of more admissions of wrongdoing in settlements in cases involving the interests of both agencies.52


Dodd-Frank expanded the CFTC's enforcement authority to police manipulative and disruptive conduct, as well as new products. With the near-completion of the CFTC's rulemakings to implement the Act, there are now numerous new statutory and regulatory areas of potential enforcement actions. Over the past few years, particularly since the financial crisis, the CFTC exhibited a new assertiveness in the types of cases under investigation and the magnitude of the civil penalties assessed. The results of the Commission's new vigorous enforcement approach were clearly exhibited in 2013, when the agency levied record fines and issued several significant penalties under its new statutory authority. In addition to a continued pursuit of the more traditional-style inquiries under pre-Dodd-Frank authority, in 2014 we expect to see the Commission continue to aggressively investigate and pursue potential manipulation cases, particularly under its new authority. These matters could present new theories of liability under the new rules, and parties responding to an inquiry will need to carefully navigate a response, including being sensitive to the potential for parallel proceedings and demands for admissions of liability. Respondents would be well-served by consulting counsel with a broad range of regulatory enforcement experience before independently engaging with the agency in this uncharted area.

The Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub. L. No. 111-203, H.R. 4173 § 753 (July 21, 2010) (amending the Commodity Exchange Act (codified at 7 U.S.C. § 1 et seq.)).
2 "CFTC Releases Enforcement Division's Annual Results," CFTC Release No. PR6749-13 (Oct. 24, 2013) [hereinafter "2013 Annual Results Release"].
3 Id.
4 In fiscal year 2013, the CFTC filed 82 enforcement actions, compared to 102 actions filed in fiscal year 2012. Over the past three fiscal years, the CFTC filed 283 actions, nearly double the number of actions brought during the prior three fiscal years, and opened more than 290 new investigations. Id.
5 See Jean Eaglesham, "SEC Brings Fewer Enforcement Actions, Slows Early-Stage Probes," THE WALL STREET JOURNAL (Dec. 17, 2013) (reporting fewer enforcement actions filed by the SEC, FINRA and the CFTC); "SEC Announces Enforcement Results for FY 2013," SEC Release No. 2013-264 (Dec. 17, 2013).
6 See Robert Schmidt and Silla Brush, "Budget Woes Leave Swaps Agency Outgunned by Wall Street," BLOOMBERG (Jan. 17, 2014).
7 See Douwe Miedema, "Exit Sparks Rising Chatter Over U.S. Swap Watchdog Top Roles," REUTERS (Nov. 6, 2013); John Kemp, "New commissioners open CFTC to change," REUTERS (Nov. 6, 2013).
8 See Sarah Lynch, "Wall Street Regulators Face Budget Crunch Under New Spending Deal," REUTERS (Jan. 14, 2014).
9 See In re Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., CFTC Docket 14-02 (Oct. 29, 2013); see also "Rabobank to Pay $475 Million Penalty to Settle Manipulation and False Reporting Charges Related to LIBOR and Euribor," CFTC Release No. PR6752-13 (Oct. 29, 2013) [hereinafter "Rabobank Release"].
10 See 2013 Annual Results Release.
11 Indeed, in early January 2014, the Department of Justice ("DOJ") filed criminal charges against three of the Rabobank traders on the heels of the CFTC settlement. "Three Former Rabobank Traders Charged With Manipulating Yen Libor," Dept. of Justice Release No. 14-038 (Jan. 13, 2014).
12 On Nov. 8, 2013, following a two-year, multi-agency criminal and civil investigation, the CFTC obtained a Consent Order in the Southern District of New York against MF Global Inc. and levied a $100 million civil penalty on top of $1.2 billion in restitution to customers for losses incurred when the firm failed in 2011. In the Consent Order, MF Global admitted to, inter alia, misusing segregated customer accounts to fund its proprietary operations. See Final Consent Order Of Restitution, Civil Monetary Penalty, And Ancillary Relief, CFTC v. MF Global Inc., No. 11-CIV-7866 (S.D.N.Y. Nov. 8, 2013).
13 See "CFTC Charges MF Global Inc., MF Global Holdings Ltd., Former CEO Jon S. Corzine, and Former Employee Edith O'Brien for MF Global's Unlawful Misuse of Nearly One Billion Dollars of Customer Funds and Related Violations," CFTC Release No. PR6626-13 (June 27, 2013).
14 In July 2012, the CFTC accused PFG and its owner, Russell R. Wasendorf, Sr., of committing fraud by misappropriating customer funds in segregated accounts, violating customer segregation laws, and making false statements in filings required by the Commission concerning funds held in segregation for customers trading on U.S. exchanges. See Complaint, CFTC v. Peregrine Fin. Grp., Inc., No. 1:12-CV-05383 (N.D. Ill. filed July 10, 2012). The Court entered a default judgment against PFG in February of 2013. See Default Judgment Order of Permanent Injunction and Other Ancillary Relief, CFTC v. Peregrine Fin. Grp., Inc., No. 1:12-CV-05383 (N.D. Ill. entered Feb. 13, 2013). Wasendorf also was charged criminally and pled guilty. On January 23, 2013, Wasendorf was sentenced to 50 years in prison and ordered to pay more than $215 million in restitution. See United States v. Russell Wasendorf, Sr., No. 12-CR-2021-LRR (N.D. Iowa Jan. 23, 2013).
15 See "CFTC Permanently Bars Accountant, Jeannie Veraja-Snelling, for Failing to Properly Audit Peregrine Financial Group, Inc.," CFTC Release No. PR6675-13 (Aug. 26, 2013); "CFTC Files Complaint against U.S. Bank, N.A. Alleging Unlawful Use of Peregrine Financial Group, Inc.'s Customer Segregated Funds and Violation of Customer Segregation Laws," CFTC Release No. PR6601-13 (June 5, 2013) [hereinafter "U.S. Bank Release"].
16 U.S. Bank Release.
17 See 2013 Annual Results Release.
18 See Dodd-Frank.
19 Prohibition on the Employment, or Attempted Employment, of Manipulative and Deceptive Devices and Prohibition on Price Manipulation, 76 Fed. Reg. 41,398, 41,398 (July 14, 2011); see Dodd-Frank (amending Commodity Exchange Act § 6(c) (codified at 7 U.S.C. § 9)).
20 See Consent Order for Permanent Injunction, Civil Monetary Penalty, and Other Equitable Relief, CFTC v. Arista LLC, 12-CIV-9043 (S.D.N.Y. Dec. 3, 2013); "Federal Court Orders Defendants Arista LLC, Abdul Sultan Walji, and Reniero Francisco, All of Southern California, to Pay over $22 Million in Restitution and Fines for Commodity Pool Fraud and Making False Statements to the CFTC," CFTC Release No. PR6786-13 (Dec. 13, 2013).
21 See Default Judgment, CFTC v. Peregrine Fin. Grp., Inc., No. 1:12-CV-05383 (N.D. Ill. entered Feb. 13, 2013).
22 See In re Butterfield, CFTC Docket No. 13-33 (Sep. 16, 2013); "CFTC Orders Futures Broker Employee Susan Butterfield to Pay $50,000 Penalty in Settlement of Charges of Making False Statements to the CFTC During Her Investigative Testimony," CFTC Release No. PR 6693-13 (Sep. 16, 2013); see also Final Judgment and Consent Order for Permanent Injunction, Civil Monetary Penalty, and Other Equitable Relief, CFTC v. Nunn, 12-CIV-7786 (S.D.N.Y. Dec. 18, 2013).
23 "CFTC Orders President of a Russian Bank, Artem Obolensky, to Pay $250,000 Penalty to Settle Charges of Making False Statements to the CFTC During an Investigation," CFTC Release No. PR6815-14 (Jan. 2, 2014).
24 See Dodd-Frank (amending Commodity Exchange Act § 6(c) (codified at 7 U.S.C. § 9)); 76 Fed. Reg. at 41,399 ("The language of CEA section 6(c)(1), particularly the operative phrase 'manipulative or deceptive device or contrivance,' is virtually identical to the terms used in section 10(b) of the Securities Exchange Act of 1934."); id. ("Given the similarities between CEA section 6(c)(1) and Exchange Act section 10(b), the Commission deems it appropriate and in the public interest to model final Rule 180.1 on SEC Rule 10b–5.").
25 76 Fed. Reg. at 41,399.
26 See 17 C.F.R. § 180.1(a).
27 See id. For a discussion of the similarities and differences between these two enforcement provisions, see WilmerHale Client Alert, The Commodity Futures Trading Commission Issues Sweeping New Rules to Prohibit Fraud and Manipulation in the Swaps, Cash, and Futures Markets (July 28, 2011), available at http://www.wilmerhale.com/pages/publicationsandnewsdetail.aspx?NewsPubId=88783.
28 "CFTC Files and Settles Charges Against JPMorgan Chase Bank, N.A., for Violating Prohibition on Manipulative Conduct in Connection with 'London Whale' Swaps Trades," CFTC Release No. PR6737-13 (Oct. 16, 2013) [hereinafter "JPMorgan Release"].
29 See Consent Order For Permanent Injunction, Restitution, Civil Monetary Penalty, And Other Equitable Relief, CFTC v. Atl. Bullion & Coin, Inc., 8:12-cv-01503-JMC (D.S.C. Feb. 27, 2013); "CFTC Settles Charges against Ronnie Gene Wilson of South Carolina and His Company, Atlantic Bullion and Coin, for Operating a Multi-Million Dollar Silver Bullion Ponzi Scheme," CFTC Release No. PR6524-13 (Feb. 28, 2013).
30 76 Fed. Reg. at 41,403.
31 Id.
32 Id.
33 The CFTC recently filed a complaint against two CME NYMEX employees, the CME NYMEX, and a broker alleging violations of Section 9(e)(1), which prohibits trading on, or disclosure of, material, nonpublic information gained through specific employment relationships, for conduct that occurred prior to Dodd-Frank's adoption. The CFTC alleged that the employees shared material, nonpublic information concerning transactions on the exchange with a broker. See Amended Complaint, CFTC v. Byrnes, No. 13-CIV-1174 (S.D.N.Y. May 8, 2013). The CFTC complaint also alleges that the broker who received the information from the CME employees aided and abetted the employees' violation of Section 9(e)(1), though notably the CFTC did not allege that the broker violated Section 9(e)(2), which prohibits trading on the material nonpublic information received from the person with the employment relationship. Id.
34 7 U.S.C. § 6c(a)(5)(C).
35 See CFTC, Antidisruptive Practices Authority, Interpretive Guidance & Policy Statement, 78 Fed. Reg. 31,890 (May 28, 2013), available at http://www.cftc.gov/ucm/groups/public/@lrfederalregister/documents/file/2013-12365a.pdf. For a discussion of the CFTC's final interpretive guidance on prohibition on certain disruptive trading practices added by Dodd-Frank, see WilmerHale Client Alert, CFTC Staff Finalizes Guidance on Anti-Disruptive Trading Practices (May 23, 2013), available at http://www.wilmerhale.com/pages/publicationsandnewsdetail.aspx?NewsPubId=10737421468.
36 See Order Instituting Proceedings Pursuant To Sections 6(C) And 6(D) Of The Commodity Exchange Act, As Amended, Making Findings And Imposing Remedial Sanctions, In re Panther Energy Trading LLC, CFTC Docket No. 13-26 (July 22, 2013); "CFTC Orders Panther Energy Trading LLC and its Principal Michael J. Coscia to Pay $2.8 Million and Bans Them from Trading for One Year, for Spoofing in Numerous Commodity Futures Contracts," CFTC Release No. PR6649-13 (July 22, 2013). Earlier in the 2013 fiscal year, the CFTC filed two smaller, pre-Dodd-Frank actions that could fall under the definition of spoofing: CFTC v. Moncada, No. 12-CIV-8791 (S.D.N.Y. filed Dec. 4, 2012) and In re Gelber Grp., LLC, CFTC Docket No. 13-15 (CFTC filed Feb. 8, 2013), the latter of which concluded with a $750,000 civil penalty.
37 "CFTC Files Complaint in Federal Court against Eric Moncada, BES Capital LLC, and Serdika LLC Alleging Attempted Manipulation of Wheat Futures Contract Prices, Fictitious Sales, and Non-Competitive Transactions," CFTC Release No. PR6441-12 (Dec. 4, 2012) (charging defendants with manipulation of futures contracts through spoofing in a pre-Dodd-Frank case).
38 See 15 U.S.C. § 8304.
39 See 7 U.S.C. § 2(c)(2)(D).
40 See Order, Plaintiff's Motion for Preliminary Injunction, CFTC v. Hunter Wise Commodities, LLC, No. 12-81311 (S.D. Fla. entered Feb. 25, 2013).
41 Complaint, CFTC v. Hunter Wise Commodities, LLC, No. 12-81311 (S.D. Fla. filed Dec. 5, 2012).
42 78 Fed. Reg. 56,542 (Sept. 12, 2013), available at http://www.cftc.gov/ucm/groups/public/@lrfederalregister/documents/file/2013-22185a.pdf.
43 Id. at 56,551. The CFTC has reopened the comment period for its Concept Release regarding automated systems and risk controls. The new comment period commenced on January 21, 2014, the date of a public meeting of the CFTC's Technology Advisory Committee ("TAC"), at which the TAC and subcommittees on Automated and High Frequency Trading and Data Standards discussed the Concept Release, as well as issues related to swap data reporting and swap execution facilities. The new comment period will extend through February 14, 2014. See "CFTC Reopens Comment Period for Concept Release on Risk Controls and System Safeguards for Automated Trading Environments," CFTC Release No. PR6835-14 (Jan. 17, 2014).
44 For a more detailed discussion of the CFTC's Concept Release on Automated Systems and its implications, see WilmerHale Client Alert, "CFTC Concept Release on Automated Systems and Risk Controls" (September 16, 2013), available at http://www.wilmerhale.com/pages/publicationsandnewsdetail.aspx?NewsPubId=10737422129.
45 2013 Annual Results Release.
46 At a Financial Crimes and Cybersecurity conference held at the Federal Reserve Bank of New York, former Director of Enforcement, David Meister, noted that inter-agency coordination can be expected to increase in the future. See Eric Hornbeck, "Ex-CFTC Official Says Parallel Proceedings Will Increase," Law360 (Nov. 19, 2013).
47 See Rabobank Release.
48 See "Rabobank Admits Wrongdoing in Libor Investigation, Agrees to Pay $325 Million Criminal Penalty," Dept. of Justice Release 13-1147 (Oct. 29, 2013), available at http://www.justice.gov/opa/pr/2013/October/13-crm-1147.html.
49 See "Three Former Rabobank Traders Charged With Manipulating Yen Libor," supra note 11.
50 See, e.g., Final Consent Order Of Restitution, Civil Monetary Penalty, And Ancillary Relief, CFTC v. MF Global Inc., No. 11-CIV-7866 (S.D.N.Y. Nov. 8, 2013) (MF Global "[a]dmits the allegations pertaining to liability against MF Global based on acts and omissions of its employees as set forth in this Consent Order and the Complaint...."); JPMorgan Release, CFTC Release No. PR6737-13.
51 Hornbeck, Law360 (Nov. 19, 2013).
52 See Mary Jo White, "The Importance of Trials to the Law and Public Accountability," Remarks at 5th Annual Judge Thomas A. Flannery Lecture, Washington D.C., Nov. 14, 2013.

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    Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

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    We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

    We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

    Mondaq News Alerts

    In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


    A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

    Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

    Log Files

    We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


    This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

    Surveys & Contests

    From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


    If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


    From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

    *** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .


    This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

    Correcting/Updating Personal Information

    If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

    Notification of Changes

    If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

    How to contact Mondaq

    You can contact us with comments or queries at enquiries@mondaq.com.

    If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.

    By clicking Register you state you have read and agree to our Terms and Conditions