Does CFTC have authority to take an enforcement action against non registrants?

The CFTC takes enforcement actions against individuals and firms registered with the Commission, those who are engaged in commodity futures and option trading on designated domestic exchanges, and those who improperly market futures and options contracts.

What is a CFTC no action letter?

No-Action. A no-action letter is a written statement by the staff of a Division of the Commission or its Office of the General Counsel that such staff will not recommend that the Commission commence enforcement action for failure to comply with a specific provision of the Act or Commission regulations.

Is a CFTC enforcement action criminal?

Criminal activity involving commodity-related instruments can result in prosecution for criminal violations of the CEA and for violations of other federal criminal statutes, including commodities fraud, mail fraud, wire fraud and conspiracy.

What is a reportable position CFTC?

For exchange-traded futures and commodity options, a “reportable position” is defined in CFTC Regulation 15.00(p)(1) as any open contract position that at the close of the market on any business day equals or exceeds the quantity set forth in CFTC Regulation 15.03 in either: (i) any one futures contract or commodity on …

Does CFTC have jurisdiction over all activity that violates the Commodity Exchange Act?

To achieve this aim, the CFTC administers and enforces the Commodity Exchange Act (“CEA”) and its respective regulations. The CFTC has exclusive jurisdiction over, among others, any transaction “for the contract of sale of a commodity for future delivery,” with certain exceptions.

Can the NFA take enforcement action?

Enforcement & Registration Actions NFA has the authority to take disciplinary actions against any Member or Associate that violates its rules. If an NFA Member or Associate engages in conduct that puts customers, the futures markets, or other Members at risk, immediate action will be taken accordingly.

What is no-action relief?

No-action relief is a mechanism that allows registrants to obtain certain assurances when their conduct may touch upon a gray area of regulation, or even may be technically proscribed, but does not raise the policy concerns underlying a particular rule.

Where can I find SEC no-action letters?

Division of Trading and Markets No-Action, Exemptive, and Interpretive Letters

• Request letters may be sent to the following email address: [email protected].
• For assistance in preparing a request for a no-action, interpretive or exemptive letter, please refer to the General Information section below.

Who enforces CFTC rules?

The mission of the Division of Enforcement (DOE) is to protect the public and preserve market integrity by detecting, investigating and prosecuting violations of the Commodity Exchange Act (CEA) and CFTC regulations.

What is non reportable position CFTC?

A Non-reportable position, in line with the CFTC’s definition, is that of any trader whose position is smaller than the reporting level in every contract month (350 for Brent, 250 for gasoil, 100 for soft commodities).

What is a reportable position?

Reportable-position definition Filters. In the futures industry, the level of held futures contracts at which the customer must be identified to the exchange and to the Commodity Futures Trading Commission (CFTC).

What entities does the CFTC regulate?

The CFTC regulates the U.S. derivatives markets….Intermediaries

• The operators of commodity pools, which are funds that combine investor contributions to trade on the futures and commodities markets.
• Commodity trading advisors, those who provide investment advice for the commodity and futures markets.

What powers does the CFTC have?

The Commission must authorize all enforcement actions, and the CFTC has the power to bring such actions either administratively (before administrative law judges or other appointed presiding officers) or in federal court.

What happens if you violate the NFA?

Any violation of the NFA is a felony punishable by a fine of up to $250,000 and up to 10 years in prison, and any firearm involved is forfeit. Of NFA firearms (silencers, machine guns, short barrel rifles, short barrel shotguns, any other weapon (AOW) and destructive devices) machineguns are the most restricted.

Does NFA have jurisdiction to bring disciplinary proceeding against CFTC registered?

NFA has the authority to take disciplinary actions against any Member or Associate that violates its rules. If an NFA Member or Associate engages in conduct that puts customers, the futures markets, or other Members at risk, immediate action will be taken accordingly.

What is the purpose of a no-action letter?

A no-action letter is a letter written by the staff members of a government agency, requested by an entity subject to regulation by that agency, indicating that the staff will not recommend that the agency take legal action against the entity, should the entity engage in a course of action proposed by the entity …

How do you get a no-action letter?

No-action letters are available in the following sources:

1. Federal Securities Law Reporter.
2. SEC website – Division of Corporation Finance No-Action, Interpretive and Exemptive Letters.
3. Lexis.
4. Westlaw.

What are the CFTC regulations?

What Does the CFTC Regulate? The CFTC regulates the U.S. derivatives markets. This includes the commodity futures, options, and swaps markets as well as over-the-counter (OTC) markets.