According to Reuters, the CFTC pursued 82 enforcement actions in fiscal 2021, with fraud cases representing the largest number of actions and imposed over $2.5 billion in fines and restitution. That is an incredible sum although admittedly a large proportion was targeted at one company for market manipulation – Glencore. It does show though that the regulators have teeth and that they are pursuing manipulation and other sharp practice. Maybe that is partially why, in out risk study this year, regulatory risk showed up as an area lacking good systems coverage. As we stated in the report…. There are various forms of applications available on the market to aid with regulatory risks, ranging from trade reporting through surveillance tools that look at trading patterns for illegal or questionable trading activities. Despite the current availability of these types of solutions, the respondents in our survey saw this area as one requiring greater focus. The results of the survey are interesting as although almost half of the respondents indicated they have tools in place for regulatory risk (the most for any class of risk applications), almost 30% claimed that suitable tools were lacking. We consulted with Aviv Handler of ETR Advisory and… continue reading
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