In a public statement supporting the outcome of a recent CFTC enforcement action, CFTC Commissioner Christy Goldsmith Romero outlined how her proposed "Heightened Enforcement Accountability and Transparency" test would have applied to the CFTC determination to impose out-of-the-ordinary penalties.
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CFTC Commissioner Caroline D. Pham encouraged firms to establish a compliance program to "identify, escalate and self-report material or potentially material non-compliance issues to the relevant authorities."
LedgerX LLC, d/b/a FTX US Derivatives (FTX), submitted to the CFTC's Division of Clearing and Risk a formal withdrawal of FTX's request to amend FTX's Amended Order of Registration as a derivatives clearing organization. The request would have allowed FTX to offer products that are not fully collateralized.
The CFTC said it recouped over $2.5 billion in restitution, disgorgement and civil monetary penalties as a result of enforcement actions in fiscal year 2022.
CFTC Commissioner Christy Goldsmith Romero called for regulators to stop routinely accepting "neither-admit-nor-deny" settlements and proposed a Heightened Enforcement Accountability and Transparency test that would require firms to admit wrongdoing as a condition of settlements.