CFTC Cracks Down on Insider Trading

On Sept. 28, 2018, the CFTC took two new steps in an ongoing process of expanding its enforcement role and promoting the growth of traditional insider trading principles in the commodities derivatives markets. The CFTC filed a civil enforcement action against an introducing broker and one of its registered associated persons, alleging misuse of material, non-public information in the commodities futures markets. Even more significantly, the CFTC announced the formation of a new Insider Trading and Information Protection Task Force to enforce its insider trading rules. The CFTC’s increased focus on this area, particularly given conspicuous budgetary limitations, signals that preventing insider trading is now a CFTC priority. In this article, partner Harry Davis and former Schulte lawyer Brian Daly discuss in more the detail the enforcement action and the newly formed task force.