’Bait-and-switch’: Pham critical of CFTC self-reporting policy

A commissioner on the Commodity Futures Trading Commission (CFTC) criticized the agency’s policy on credit for self-reporting violations as a “bait-and-switch.”

On Monday, Brazil-based Raizen Energia was fined $850,000 by the CFTC and the Intercontinental Exchange Futures U.S. over wash trading allegations. CFTC Commissioner Caroline Pham in an accompanying statement said that the CFTC’s Enforcement Division did not provide recognition or cooperation credit despite the company self-reporting its violations.

“ … By creating an impossible-to-meet standard for receiving cooperation credit, or by being arbitrary in the application of any standard, the CFTC’s policy on self-reporting looks a lot like bait-and-switch,” she said.