On June 29, the Commodity Futures Trading Commission’s Division of Market Oversight (DMO) released the results of its trade practice rule enforcement review (Review) of Chicago Board Options Exchange Futures Exchange, LLC (CFE). The review covered a one-year period from March 1, 2014, to February 28, 2015.
DMO determined that CFE generally maintains an adequate trade practice surveillance program, uses adequate surveillance tools for detecting rule violations, and conducts thorough and complete investigations. Nonetheless, DMO made several recommendations designed to remedy certain identified deficiencies and further enhance CFE’s surveillance program. In particular, DMO recommended that CFE take appropriate action to (1) reduce staff turnover within the CFE’s department of regulation; and (2) ensure that investigations are completed in one year or less as required under CFTC Regulation 38.158(b).
A copy of the Review is available here.