Washington, D.C. — The Commodity Futures Trading Commission today issued an order simultaneously filing and settling charges against Matthew R. White and M.W. Global Futures LLC (MWGF), both of Florida, for fraudulently soliciting approximately $1.2 million for a pooled investment vehicle trading commodity futures contracts, misappropriating over $280,000 in pool participants’ funds to pay for personal expenses, and operating without registration as required. The order requires White and MWGF to pay a $200,000 civil monetary penalty and $883,974 in restitution, of which $602,003 has already been paid. The order also requires White and MWGF to cease and desist from further violations of the Commodity Exchange Act, as charged.

 

The order finds that from at least February 2014 to July 2018, White and MWGF solicited and received funds from at least six individuals (pool participants) residing in Florida and Washington state, for the purpose of trading commodity...

Washington, D.C. — Commodity Futures Trading Commission Chairman Heath P. Tarbert today announced the CFTC will hold an open meeting on Thursday, February 20, 2020 at its headquarters in Washington, D.C. at 9:30 a.m. (EST) to consider the following:

Futures markets allow commodities producers and consumers to engage in “hedging” in order to limit the risk of losing money as commodity prices change For example, a Kansas wheat farmer who plants a crop runs the risk of losing money if the price of wheat falls before harvest and sale The farmer can minimize this risk by selling wheat futures contracts, which guarantee that the farmer will receive a predetermined price Hedging helps the economy function by allowing commodities producers (such as farmers) and consumers (such as millers) to conduct their businesses with greater certainty over how much they can expect to earn from and pay for commodities

Futures markets allow commodities producers and consumers to engage in “hedging” in order to limit the risk of losing money as commodity prices change For example, a Kansas wheat farmer who plants a crop runs the risk of losing money if the price of wheat falls before harvest and sale The farmer can minimize this risk by selling wheat futures contracts, which guarantee that the farmer will receive a predetermined price Hedging helps the economy function by allowing commodities producers (such as farmers) and consumers (such as millers) to conduct their businesses with greater certainty over how much they can expect to earn from and pay for commodities

Washington, D.C. — The Commodity Futures Trading Commission and the Center for Risk Management Education and Research at Kansas State University today announced that registration is open for the third annual Agricultural Commodity Futures Conference (AgCon2020). First held in 2017, the conference is scheduled for April 1-2 in Overland Park, Kansas. Register for AgCon2020 HERE.

Featured panels planned for this year’s conference include discussions on managing risk in the face of disasters; differentiating between manipulative conduct and legitimate market activity; the transition from LIBOR to SOFR and other alternative reference rates; long-term trends in grain and oilseed futures position; and how the landscape change for futures commission merchants is shaping agricultural risk management.

A full AgCon2020 agenda will be available in March.

The conference will coincide with an open meeting of the Commission on March 31, 2020 at the Federal Reserve Bank...

Washington, D.C. — The Commodity Futures Trading Commission announced the filing of a civil enforcement action in the U.S. District Court for the Southern District of New York against defendants Q3 Holdings, LLC and Q3 I, LP and their principal, Michael Ackerman. The complaint charges the defendants with fraudulently soliciting over $33 million to purportedly trade digital assets and misappropriating a substantial portion of that total.

“This case underscores, once again, that the Commission will continue working with our regulatory partners to ensure the integrity of our markets, including those involving digital assets,” said CFTC Director of Enforcement James McDonald. “Rooting out misconduct is essential to furthering the responsible development of these innovative financial products.”

The complaint specifically alleges that from at least August 2017 through December 2019 defendants operated a fraudulent scheme in which they solicited funds to...

The CFTC Glossary is intended to assist the public in understanding some of the specialized words and phrases used in the futures industry since many of these terms are not found in standard reference works. The CFTC Glossary is not inclusive, and if you cannot find the term you are looking for or have any other comments, please let us know.

Definitions are not intended to state or suggest the views of the Commission concerning the legal significance or meaning of any word or term and no definition is intended to state or suggest the Commission’s views concerning any trading strategy or economic theory.

Washington, D.C. — The Commodity Futures Trading Commission and the Center for Risk Management Education and Research at Kansas State University today announced that registration is open for the third annual Agricultural Commodity Futures Conference (AgCon2020). First held in 2017, the conference is scheduled for April 1-2 in Overland Park, Kansas. Register for AgCon2020 HERE.

Featured panels planned for this year’s conference include discussions on managing risk in the face of disasters; differentiating between manipulative conduct and legitimate market activity; the transition from LIBOR to SOFR and other alternative reference rates; long-term trends in grain and oilseed futures position; and how the landscape change for futures commission merchants is shaping agricultural risk management.

A full AgCon2020 agenda will be available in March.

The conference will coincide with an open meeting of the Commission on March 31, 2020 at the Federal Reserve Bank...

Washington, D.C. — The Commodity Futures Trading Commission’s Technology Advisory Committee (TAC) today announced that it will hold a public meeting on Wednesday, February 26, 2020, at the CFTC’s Washington, D.C. headquarters.

CFTC Commissioner Brian Quintenz is the sponsor of the TAC.

At this meeting, the TAC will hear presentations on stablecoins, audit trails, compliance solutions, and cryptocurrency self-regulatory organizations, insurance, and custody. The TAC will also discuss and vote on a recommendation from its Cybersecurity Subcommittee regarding the Financial Services Sector Coordinating Council Cybersecurity Profile.

The meeting is open to the public with seating on a first-come, first-served basis.  Members of the public may also listen to the meeting via conference call using a domestic toll-free telephone or international toll or toll-free number to connect to a live, listen-only audio feed.  Persons requiring special...

The advertisements seem too good to pass up. They tout high returns coupled with low risks from investments in foreign currency (forex) contracts. Sometimes they even offer lucrative employment opportunities in forex trading.

Do these deals sound too good to be true? Unfortunately, they are, and investors need to be on guard against these scams. They may look like a new sophisticated form of investment opportunity, but in reality they are the same old trap—financial fraud in fancy garb.

Forex trading can be legitimate for governments and large institutional investors concerned about fluctuations in international exchange rates, and it can even be appropriate for some individual investors. But the average investor should be wary when it comes to forex offers.

The Commodity Futures Trading Commission (CFTC) and the North American Securities Administrators Association (NASAA) warn that off-exchange forex trading by retail investors is at best extremely...

The Commission relies on the public as an important source of information in carrying out its regulatory and enforcement responsibilities. If you have information about a violation of the Commodity Exchange Act or Commission regulations, you can report such violations or any other suspicious activities to our Division of Enforcement by submitting either a whistleblower Form TCR or a Complaint Form. You do not need to submit both forms, but you must submit a Form TCR to participate in the CFTC’s whistleblower program. Individuals who submit a Form TCR will receive anti-retaliation protections if applicable, and may be eligible for monetary awards of up to 30% of the money collected as a result of their information. Persons with customer complaints about a futures industry professional may also file a complaint under our Reparations Program.

The Forex market is volatile and carries substantial risks. It is not the place to put any money that you cannot afford to lose, such as retirement funds, as you can lose most or all it very quickly. The CFTC has witnessed a sharp rise in Forex trading scams in recent years and wants to advise you on how to identify potential fraud.

This week’s guest on Open Mic is Dr. Heath Tarbert, chairman and chief executive of the Commodity Futures Trading Commission. The CFTC is perhaps the least known but most significant agency in Washington, regulating price discovery of most of the products consumers use every day. From electronic currencies to farm commodities and crude oil, the agency serves as an overseer of the derivatives market through various domestic commodity exchanges and collaborates with other agencies around the world. The agency has just released a position limits proposal to guard against excessive speculation in commodity trading that has been met with resistance in Washington. Tarbert says the CFTC is investing in advanced technology to monitor electronic trade and protect true price discovery.

Off-exchange foreign currency trading, also called forex, is very risky. Beyond the general volatility between currency prices that any trader could face, fraud is prevalent in the market. In 2010, the then Chairman of the Commodity Futures Trading Commission (CFTC), Gary Gensler, deemed forex the largest area of retail fraud the CFTC oversaw. As technology has evolved, so have scams. Promoters once lured investors with the right to "control" a large amount of foreign currency with an initial payment of only a fraction of the cost. Today's fraudsters often steal investors' money using promises of fool-proof automated trading systems or "robots," claiming that their systems can earn you vast wealth even while you sleep.

The Basics

Off-exchange foreign currency trading is the buying or selling of currency in pairs such as the euro and the dollar (EUR/USD) or the British pound and Japanese yen (GBP/JPY). Profits or losses accumulate as the exchange rate fluctuates...

This week’s guest on Open Mic is Dr. Heath Tarbert, chairman and chief executive of the Commodity Futures Trading Commission. The CFTC is perhaps the least known but most significant agency in Washington, regulating price discovery of most of the products consumers use every day. From electronic currencies to farm commodities and crude oil, the agency serves as an overseer of the derivatives market through various domestic commodity exchanges and collaborates with other agencies around the world. The agency has just released a position limits proposal to guard against excessive speculation in commodity trading that has been met with resistance in Washington. Tarbert says the CFTC is investing in advanced technology to monitor electronic trade and protect true price discovery.

The Whistleblower Office will confirm in writing that your Form TCR has been received and provide you with a confirmation number, which you must retain If you voluntarily provided original information that led to a successful enforcement action, you may be eligible for an award Subscribe to receive alerts to new Notices of Covered Action, and monitor the webpage periodically Monitor the webpages of other regulatory agencies for potential Related Actions All investigations are confidential, so you should not expect the Whistleblower Office to provide you with an update on the status of your complaint

Washington, D.C. — The Commodity Futures Trading Commission at its open meeting today approved a proposed rule on position limits for derivatives and a proposed rule amending certain Swap Execution Facilities (SEF) requirements and real-time reporting requirements.

Proposed Rule: Position Limits for Derivatives  

On a 3-2 vote, the Commission approved a proposal for new and amended regulations concerning speculative position limits to conform to the Wall Street Reform and Consumer Protection Act of 2010 (the Dodd-Frank Act) amendments to the Commodity Exchange Act.

The proposal included new and/or amended federal spot month limits for 25 physical commodity derivatives and physically-settled and linked cash-settled futures, options on futures, and economically equivalent swaps for such commodities.  The proposal includes certain exemptions from position limits, such as a revised definition of “bona fide hedging transactions or positions” and an...

Before the 2008 financial crisis, swaps were executed bilaterally “over the counter,” rather than on a centralized exchange.  When crafting the Dodd-Frank Act in 2010, Congress faced a key decision:  Should it require swaps to trade like futures, via a centralized exchange order book visible to the entire market of potential buyers and sellers?  Or should it retain the old bilateral, off-exchange trading practices?