August 16, 2017

August 16, 2017

Subscribe to Latest Legal News and Analysis

August 15, 2017

Subscribe to Latest Legal News and Analysis

August 14, 2017

Subscribe to Latest Legal News and Analysis

CFTC Releases Rule Enforcement Review of the North American Derivatives Exchange

The Commodity Futures Trading Commission Division of Market Oversight (DMO) recently released the results of a rule enforcement review of the North American Derivatives Exchange Inc. (Nadex). The review covered a one-year target period and evaluated Nadex’s compliance with elements of Core Principles 2 (Compliance with Rules) and 12 (Protection of Markets and Market Participants), including compliance with relevant CFTC regulations related to these Core Principles.

DMO found that Nadex allocates staff, information technology and other resources to comply with Core Principles 2 and 12. Nadex also maintains a rulebook and written policies and procedures for its staff. However, DMO identified certain deficiencies relating to Nadex’s trade practice investigations and made recommendations regarding Nadex’s capacity to detect and investigate rule violations. In addition, DMO also identified a deficiency related to Core Principle 7 (Availability of General Information), noting that Nadex had failed to disclose relevant information regarding its market maker programs. Nadex has since cured this deficiency.

For more information, click here.

©2017 Katten Muchin Rosenman LLP

TRENDING LEGAL ANALYSIS


Kevin M. Foley, Finance Lawyer, Katten Muchin law Firm
Partner

Kevin M. Foley has extensive experience in commodities law and advises a wide range of clients, both in the United States and abroad, on compliance with the Commodity Exchange Act and the rules of the Commodity Futures Trading Commission (CFTC) affecting traditional exchange-traded products, as well as the over-the-counter markets involving swaps and other derivative instruments. His clients include futures commission merchants, derivatives clearing organizations, designated contract markets, foreign boards of trade and an industry trade association.

Kevin has served as counsel to the Futures Industry Association (FIA) for more than 20 years. In 2012 he was recognized for his exemplary efforts on behalf of the association and the industry, in particular for his guidance in navigating the challenges confronting FIA member firms in complying with the Dodd-Frank Wall Street Reform and Consumer Protection Act.

312-902-5372