SEC, CFTC actively probe off-channel comms violations, top officials say

Financial Crimes 2024 Stage shot

Two senior officials from the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) described how both agencies are committed to rooting out off-channel communications among registered entities for the long term.

“The off-channel communications issue will be with us for the next 50 years,” said Zachary Sturges, senior counsel at the SEC, during Compliance Week’s Financial Crimes and Regulatory Compliance Summit June 10 at Fordham Law School.

Texting and phone apps are the way traders under 40 communicate, Sturges said, and firms will have to use every means at their disposal—better technology, better policies, better training—to record and retain their business communications.

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