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Purpose

To alert participants in the commodities markets to an important development in the exercise of enforcement authority by the Commodity Futures Trading Commission.

Design/methodology/approach

Explains a recent proceeding which resulted in the CFTC’s first-ever application of a newly-promulgated regulatory Rule to punish “insider trading” involving the commodities markets.

Findings

The CFTC has shown that it intends to apply its new Rule aggressively to address insider trading in the commodities markets.

Practical implications

As a result of the CFTC’s new enforcement approach to regulating insider trading in the areas under its jurisdiction, all participants in the commodities markets must be attuned to the prohibition on insider trading, familiar with actions that might be deemed unlawful insider trading, and act accordingly to avoid improper trading activities.

Originality/value

Practical guidance for participants in the commodities markets from an experienced attorney with expertise in government enforcement matters.

Licensed re-use rights only
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