The U.S. Commodity Futures Trading Commission (CFTC) has completed a rule enforcement review of ICE Futures. The Commission’s Division of Market Oversight released the full review of ICE’s disciplinary program, along with a statement, today. But what were they looking for at ICE?
CFTC Determines IntercontinentalExchange’s Discplinary Program “Adequate”
The CFTC concluded that ICE maintains an “adequate” disciplinary program:
The Exchange has the authority to investigate potential rule violations, prosecute cases, and discipline members who are found to have violated Exchange rules. The Division found that the Exchange maintains a small but highly experienced staff in its Compliance Department (Compliance). The Division believes that the number of Compliance personnel was sufficient for enforcement purposes during the target period.
The review wasn’t totally positive, however, and the details suggest pertinent compliance areas for future reference.
The Exchange should keep written records of recommendations between Compliance and disciplinary subcommittee(s) regarding settlements.
This includes written explanations for recommended changes in sanctions.
The Exchange should conduct thorough interviews of management and employees in case of a violation.
Settlement negotiations should only come after the aforementioned thorough interviews.
The Exchange should reduce the time between its investigation and referral of the case to its Business Conduct Committee.
The Exchange should record dates of report approval.
Read the entire report here.