The U.S. Commodity Futures Trading Commission has introduced a new enforcement cooperation policy that now serves as its main framework for judging self-reporting and cooperation. Under the updated advisory, firms that voluntarily disclose violations, remediate quickly, provide restitution, and fully cooperate during investigations may qualify for reduced penalties, and in some cases possible declinations.
The advisory was issued by the Division of Enforcement and replaces all prior guidance tied to cooperation credit. The CFTC said the new framework is intended to set a clearer standard for how enforcement staff evaluate disclosure, remediation, and assistance in investigations across cases. The message is direct: firms seeking leniency are expected to act early, not after an investigation is already far along.
A clearer route to possible declinations
One of the most significant changes is the formal structure for possible declinations. According to the advisory, respondents may be considered for that outcome if they self-report misconduct voluntarily, cooperate fully, provide restitution, and complete timely remediation.
The agency also made clear that cooperation by itself does not guarantee a declination. If a firm does not meet that threshold, the Division of Enforcement may still grant a lower level of cooperation credit that could affect penalties. At the same time, aggravating circumstances may limit how much credit a respondent receives.
Selig and Miller frame the policy around enforcement consistency
Chairman Mike Selig said the initiative is meant to strengthen enforcement against fraud, insider trading, and market abuse. He also said the policy should improve consistency and transparency across enforcement proceedings.
Enforcement Director David Miller said the agency designed the policy to simplify how cooperation credit is applied in investigations. In his view, the advisory gives firms a clearer picture of what the division expects when they seek consideration. He also said it helps market participants understand the enforcement process before investigations move ahead.
Prompt compliance remains a key expectation
The CFTC said the advisory specifically encourages prompt compliance by firms operating in regulated derivatives and commodities markets. For respondents seeking credit, the agency expects more than a basic statement of cooperation. It listed practical steps such as preserving records, providing accurate information, and supporting remediation tied to misconduct findings.
The commission repeated that enforcement against fraud and market misconduct remains a central priority. It said the revised framework is intended to support more efficient investigations while encouraging earlier disclosures from market participants. Whether a firm receives meaningful credit will depend on the timing of its report, the quality of its cooperation, and the substance of its remediation efforts.