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.
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The review wasn’t totally positive, however, and the details suggest pertinent compliance areas for future reference.
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The Exchange should keep written records of recommendations between Compliance and disciplinary subcommittee(s) regarding settlements.
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This includes written explanations for recommended changes in sanctions.
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The Exchange should conduct thorough interviews of management and employees in case of a violation.
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Settlement negotiations should only come after the aforementioned thorough interviews.
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The Exchange should reduce the time between its investigation and referral of the case to its Business Conduct Committee.
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The Exchange should record dates of report approval.
Read the entire report here.
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