Nasdaq unit reaches $22M settlement with CFTC over supervision failures
By 
Aaron Nicodemus2024-08-29T21:01:00
The Commodity Futures Trading Commission (CFTC) fined a Nasdaq subsidiary $22 million over allegedly misleading the public, regulators, and its own compliance staff about the details of a trader incentive program.
Nasdaq Futures, which voluntarily allowed its CFTC registration as a designated contract market to lapse in 2020, allegedly did not fully disclose the details of the incentive program, made false and misleading statements about it, and failed to properly supervise it, the CFTC said in a press release Thursday.
Nasdaq Futures launched the NFX exchange in 2015, trading in energy futures. One incentive program, a Designated Market Maker program, was disclosed to the public and the CFTC as “an incentive program that would pay a fixed monthly stipend to market makers,” the CFTC said in its order.
THIS IS MEMBERS-ONLY CONTENT
You are not logged in and do not have access to members-only content.
If you are already a registered user or a member, SIGN IN now.
Related articles
-
News BriefPham cries CFTC overreach against compliance officer in $48M fine of TOTSA
The Commodities Futures Trading Commission fined TOTSA TotalEnergies Trading $48 million for allegedly engaging in price manipulation, with Commissioner Carolyn Pham defending a compliance officer at the Swiss energy company accused of making false statements.
-
News BriefCFTC orders BNY to pay $5M over reporting failures
BNY, formerly BNY Mellon, will pay a $5 million fine to the Commodity Futures Trading Commission for “significant reporting failures” related to its swap dealer business.
-
News BriefOFAC: Nasdaq to pay $4M over ex-subsidiary’s Iran sanctions lapses
Nasdaq agreed to pay more than $4 million as part of a settlement with the Office of Foreign Assets Control addressing apparent Iran sanctions violations at the stock exchange operator’s former Armenian subsidiary.
More from Regulatory Enforcement
-
News BriefSEC’s Uyeda: ‘Enforcement is the wrong way’ to handle off-channel communications
The U.S. Securities and Exchange Commission’s Mark Uyeda told an audience of investment advisers that the SEC will no longer prioritize stand-alone enforcement actions for violations of the SEC’s rules on off-channel communications.
-
News BriefAdobe agrees to $150M settlement over alleged cancellation fee violations
Adobe agreed to a $150 million settlement with the U.S. Department of Justice over accusations that it concealed software termination fees and made it difficult for customers to cancel.
-
ArticleU.K. competition regulator ‘very likely’ to use new enforcement powers despite government’s pro-growth agenda
New powers granted to the U.K.’s main competition watchdog will result in greater scrutiny, tougher enforcement, and a stark warning for companies to review their sales and marketing promotions—especially since some practices have been pushed firmly into the spotlight thanks to legislation that came into effect last year.