A slight increase in the number of actions filed by the CFTC. The CFTC filed 69 actions in FY 2019, while the average of the past five prior FYs was 67.5. The actions filed during FY 2019 include:

Maintaining a docket of over 140 pending litigations against corporate entities and individuals.

A 39% increase over the prior FY in total monetary relief awarded in CFTC enforcement actions (more than $1.3 billion), which was the fourth highest total in CFTC history.

The filing of more cases involving manipulative conduct and spoofing than any prior year except for FY 2018.

The filing of 16 actions in parallel with criminal authorities, which is more than in any prior year.

The publication of its first enforcement manual in May 2019 (see Legal Update, CFTC Publishes First Enforcement Manual).

A focus on actions aimed at preserving market integrity, with 65% of matters filed involving commodities fraud, manipulative conduct, false reporting, or spoofing. The CFTC notes in the report that it has enhanced its focus on commodities fraud and manipulative conduct, which, according to the CFTC, "strike at the core" of its priorities of "preserving market integrity and protecting market participants."

An upward trend in filings involving manipulative conduct or disruptive trading. In FY 2019, there were 16 such cases filed, which is about three times the amount in prior years.

An emphasis on individual accountability, with 58% of actions involving charges against one or more individuals at financial institutions, proprietary trading firms, and/or managed funds.

Ensuring registrants adopt and implement proper risk-management procedures. For example, in FY 2019:

For details on CFTC requirements related to risk-management procedures, see Practice Note, US Derivatives Regulation: Internal Business Conduct (IBC) Rules for Swap Dealers and MSPs: Internal Compliance Duties for SDs and MSPs.

A focus on the adequacy of an entity's compliance program. For example, the CFTC filed charges against a SD that failed to implement effective processes and controls around swap reporting and made misleading statements and omissions regarding the compliance inadequacies. The CFTC also noted several other separate instances where compliance failures resulted in substantive misconduct on behalf of the chief compliance officer (CCO) or led to charges regarding a CCO's failure to supervise. (For details on CCO duties, see Practice Note, US Derivatives Regulation: Internal Business Conduct (IBC) Rules for Swap Dealers and MSPs: Designation of Chief Compliance Officer (CCO) and Preparation of CCO Annual Compliance Report.)

Prosecuting misconduct involving digital assets that fit the Commodity Exchange Act (CEA) definition of commodity. For example, the CFTC instituted:

For details on the CFTC's efforts regarding digital assets, see the Virtual Currency and Digital Asset Regulatory Tracker.

Targeting misappropriation of confidential information.

Encouraging cooperation and self-reporting, while protecting the integrity of CFTC investigations. According to the CFTC, several of the most significant matters in FY 2019 were developed with the assistance of cooperating witnesses or corporate cooperation. The CFTC notes that cooperation and self-reporting can result in substantially reduced penalties. "Affirmative steps" taken by a party to undermine a CFTC investigation can result in additional enforcement actions or more severe penalties.

Engaging in a multi-year project to enhance data analytics.

Preserving market integrity.

Protecting customers.

Promoting individual accountability.

Increasing coordination with other regulators and criminal authorities.