The Commodity Futures Trading Commission (CFTC) is seeking comment on a proposed amendment to its whistleblower rules that would enhance incentives for whistleblowers to report fraud and market manipulation. At the same time, the CFTC’s head of enforcement has warned that its enforcement program will “relentlessly focus on serious violations.”
Under the proposed whistleblower rule change, the CFTC would incorporate a “presumption” of a 30 percent whistleblower award of $5 million or less, subject to CFTC discretion and an analysis of relevant regulatory factors. Current rules allow eligible whistleblowers to receive “between 10 and 30 percent” of monetary sanctions collected.
