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CFTC Task Forces to Address Cybersecurity and Greenwashing

"Recent events that directly impacted derivatives markets highlight the concerns that cybersecurity breaches raise in our markets. Meanwhile, as more firms tout their environmental credentials and as voluntary carbon markets grow, there exists the potential for fraud and manipulation."
CFTC Chair Rostin Behnam
"Recent events that directly impacted derivatives markets highlight the concerns that cybersecurity breaches raise in our markets. Meanwhile, as more firms tout their environmental credentials and as voluntary carbon markets grow, there exists the potential for fraud and manipulation."
CFTC Chair Rostin Behnam

The CFTC Division of Enforcement established a Cybersecurity and Emerging Technologies Task Force and an Environmental Fraud Task Force.

In the announcement, the CFTC stated that the Cybersecurity and Emerging Technologies Task Force will (i) ensure that registrants have sufficient cybersecurity controls and related customer protections, (ii) prosecute commodity markets manipulation and technology-enabled thefts of material non-public information, and (iii) assess emerging technologies, such as artificial intelligence and machine learning. The Environmental Fraud Task Force will be focused on combating fraud in both regulated derivatives markets and relevant spot markets based on "purported efforts to address climate change and other environmental risks." According to the CFTC, this will include fraud as to the "purported environmental benefits of purchased carbon credits, as well as registrants’ material misrepresentations regarding ESG products or strategies."

The CFTC said that the task forces will "prosecute cases, serve as subject matter experts, and coordinate efforts with the CFTC’s other divisions and offices."

Primary Sources

  1. CFTC Press Release: CFTC Division of Enforcement Creates Two New Task Forces

Tags

Regulated Activities
Data Protection / Cybersecurity
Regulated Entities
Regulatory Agencies
Regulated Products
ESG
Body of Law
CEA Regulation Privacy / Data Protection / Cybersecurity
Jurisdiction
US - Federal
Organization
CFTC, NFA, CFTC Markets
Sub-Author
CFTC