CFTC Staff Issues Advisory Outlining Criteria for Enforcement Referrals

WASHINGTON, D.C. — The Commodity Futures Trading Commission (CFTC) has issued a staff advisory providing guidance on the criteria used by its operating units to refer self-reported violations and compliance failures to enforcement. Issued jointly by the Market Participants Division, the Division of Clearing and Risk, the Division of Market Oversight (the Operating Divisions), and the Division of Enforcement (DOE), the advisory outlines the materiality and supervisory standards the Operating Divisions will apply when evaluating whether to refer matters to the DOE. The guidance specifically applies to self-reported violations, supervision concerns, and non-compliance issues identified across market participants and regulated entities. This latest advisory builds upon the implementation of an advisory issued by the DOE on February 25, 2025, which updated the CFTC's framework regarding self-reporting, cooperation, and remediation.