The U.S. Commodity Futures Trading Commission (CFTC) today announced 2019 Examination Priorities for registrants of the Division of Market Oversight (DMO), Division of Swap Dealer & Intermediary Oversight (DSIO), and Division of Clearing & Risk (DCR). This marks the first time that the agency has published Examination Priorities for its divisions.
“I commend DMO, DSIO and DCR leadership and staff for their work to bring additional transparency into the CFTC agenda in order to ensure that registered market participants devote adequate compliance resources consistent with our regulatory priorities,” said CFTC Chairman J. Christopher Giancarlo. “This first-ever publication of division examination priorities is in line with Project KISS and other agency initiatives to improve the relationship between the agency and the entities it regulates, while promoting a culture of compliance at our registrants.”
DMO’s Compliance Branch currently conducts examinations of designated contract markets (DCMs) to monitor their compliance with the Commodity Exchange Act and CFTC regulations through Rule Enforcement Reviews (RERs). In 2019, the Compliance Branch’s RERs will focus on specific elements of DCMs’ traditional self-regulatory programs, as well as emerging areas of self-regulation, where regulatory requirements and best practices may still be developing.
DMO’s Compliance Branch’s 2019 Examination Priorities include cryptocurrency surveillance practices, real-time market monitoring practices and other market and trading surveillance.
In addition to conducting examinations of DCMs, DMO’s Compliance Branch’s priorities for 2019 also include regulatory consultations with a number of swaps execution facility (SEFs) to provide effective oversight while the CFTC finalizes new SEF rules and the Compliance Branch develops its examination program for SEFs.