Consumer Protection / Conduct in United States

What Changed

Rule 15c2-11 requires broker-dealers to review current, publicly available issuer information (e.g., via EDGAR or issuer websites) before publishing or submitting quotations for OTC securities, with exceptions like piggybacking limited to scenarios with one-way priced quotes, post-trading suspension restrictions (60 days), and time-bound quoting for shell companies (18 months).

What You Need To Do

• Review processes
• Exception compliance
• Systems updates
• Issuer coordination
• Comment submission

Key Dates

References

• [1] sec.gov/newsroom/press-releases/2020-212
• [2] acaglobal.com/insights/sec-no-action-letter-regarding-ame...
• [3] gibsondunn.com/recent-sec-interpretation-of-exchange-act-...
• [4] freewritings.law/2020/09/sec-amends-rule-15c2-11/
• [5] ecfr.gov/current/title-17/chapter-II/part-240/subpart-A/s...
• [6] finra.org/rules-guidance/guidance/reports/2024-finra-annu...
• [7] otcmarkets.com/learn/15c2-11-resource-center
• [8] dwt.com/blogs/financial-services-law-advisor/2024/11/new-...

What Changed

This is an enforcement action, not a rulemaking, so there are no new regulatory changes or requirements. It reaffirms existing CEA prohibitions on fraud in retail forex transactions (CEA Section 6(c)(1) and Regulation 180.1), CPO/CTA fraud, and related violations, with penalties triple the monetary gain and permanent injunctions. The judgment highlights judicial emphasis on exploiting vulnerable communities, such as non-English-speaking groups reliant on advisors.

What You Need To Do

• Conduct gap analyses of retail forex, CPO, and CTA operations for fraud risks, especially in customer communications and targeting vulnerable groups
• Enhance disclosures, suitability assessments, and recordkeeping to demonstrate non-reliance exploitation
• Review parallel criminal risks (e
• Implement training on CEA Sections 4k, 4m, 4n, and Regulations 5
• Monitor for restitution collection, noting CFTC caution on defendant insolvency

Key Dates

References

• [1] cftc.gov/PressRoom/PressReleases/9195-26
• [2] cftc.gov/PressRoom/PressReleases/9185-26
• [3] gibsondunn.com/the-cftc-advises-prediction-market-users-i...
• [4] paulweiss.com/insights/client-memos/cftc-chairman-outline...
• [5] cftc.gov/PressRoom/PressReleases?c=1006400&page=7
• [6] cftc.gov/PressRoom/PressReleases/9194-26
• [7] cftc.gov/PressRoom/PressReleases/9192-26
• [8] foley.com/insights/publications/2026/01/shifting-enforcem...

What Changed

The advisory does not introduce new rules but rather reaffirms existing CFTC enforcement authority over prediction markets and clarifies the scope of prohibited conduct: Insider trading/misappropriation: Trading based on material nonpublic information obtained through a breach of fiduciary duty or pre-existing duty of trust and confidence (Section 6(c)(1) of the Commodity Exchange Act and Regulation 180.1(a)(1) and (3)) Fraud and manipulation: Use of manipulative schemes or artifices to defraud, including trading in contracts where the trader has direct or indirect influence over the...

What You Need To Do

• *For Prediction Market Platforms (DCMs)
• *Implement robust surveillance systems to detect trading by individuals with material nonpublic information or direct/indirect influence over contract outcomes
• *Establish clear trading prohibitions in exchange rules addressing:
• Trading in contracts where the trader has influence over the outcome
• Trading based on material nonpublic information obtained through breach of duty

Key Dates

References

• [1] jdsupra.com/legalnews/cftc-files-amicus-brief-urging-3494...
• [2] mlex.com/mlex/articles/2446145/us-cftc-issues-prediction-...
• [3] gibsondunn.com/derivatives-legislative-and-regulatory-wee...
• [4] hklaw.com/en/insights/publications/2026/02/prediction-mar...
• [5] cftc.gov/PressRoom/PressReleases
• [6] cftc.gov/PressRoom/PressReleases/9158-26
• [7] heinrich.senate.gov/newsroom/press-releases/heinrich-urge...

What Changed

Removal of Settle Prep Day: NSCC Rule 50 amended to eliminate the settlement preparation stage from ACATS, effective October 17, 2025, streamlining the process for all securities transfers.[original notice] Mutual Fund/Options Synchronization: Eliminates the extra day for processing mutual funds and options via Fund/SERV, aligning their settlement with other assets; also removes the second day of Fund/SERV pending acknowledgment.[original notice] Overall Timeline Reduction: Full ACATS transfers now complete in 3-4 business days (previously longer), supporting faster asset access without...

What You Need To Do

• Operational Readiness
• Exception Handling
• System Updates
• Contact FINRA/NSCC

Key Dates

References

• [1] ftfnews.com/finra-reminds-firms-of-acatss-improvements/
• [2] finra.org/rules-guidance/key-topics/customer-account-tran...
• [3] advisorfinder.com/blog-posts/acat-transfer-guide-switch-b...
• [4] finra.org/sites/default/files/2023-04/MAP_Guidance_Owners...
• [5] sec.gov/files/rules/sro/nscc/2025/34-103890.pdf
• [6] finra.org/compliance-tools/weekly-archive/10292025
• [7] finra.org/rules-guidance/notices
• [8] sec.gov/files/rules/sro/nscc/2025/34-103542.pdf

What Changed

The enforcement actions establish precedent in three critical areas: *Market Manipulation (Spoofing): The CFTC secured consent orders against precious metals futures traders for spoofing—placing and canceling orders to create false market impressions. The orders impose three-year and six-month trading bans** and require cease-and-desist compliance with the Commodity Exchange Act's spoofing prohibition. *Misappropriation and Fictitious Trading: The CFTC obtained permanent injunctive relief requiring disgorgement of unlawful gains ($135,788) plus civil penalties ($200,000), with 18-month...

What You Need To Do

• *For Registered Futures Firms and Banks
• trade and post-trade compliance controls
• *For Commodity Pool Operators and Investment Advisors:
• by-jurisdiction licensing analyses before soliciting investors
• *For All Market Participants

Key Dates

References

• [1] cftc.gov/PressRoom/PressReleases/9168-26
• [2] jdsupra.com/legalnews/states-step-up-enforcement-of-crypt...
• [3] cftc.gov/LawRegulation/EnforcementActions/index.htm
• [4] foley.com/insights/publications/2026/01/shifting-enforcem...
• [5] lowenstein.com/news-insights/newsletters/crypto-brief-jan...
• [6] cftc.gov
• [7] cohenco.com/knowledge-center/insights/january-2026/cftc-n...
• [8] cftc.gov/PressRoom/PressReleases

What Changed

The CFTC has obtained federal court orders imposing civil monetary penalties and trading bans on individuals and firms for spoofing and misappropriating confidential information. The CFTC has also charged an unregistered commodity pool operator with fraud and registration violations.

What You Need To Do

• Verify registration with the CFTC at NFA BASIC before committing funds
• Review and update anti-spoofing and anti-fraud policies and procedures
• Ensure compliance with CFTC regulations regarding commodity pool operations and futures market participation

Key Dates

Related Regulations

What Changed

This is an enforcement action, not a rulemaking, so there are no new regulatory changes or requirements. It reaffirms existing CEA prohibitions on fraud, including Section 6(c)(1), 7 U.S.C. § 9(1), and 17 C.F.R. § 180.1(a)(1)-(3), covering material misrepresentations, omissions, and deceptive schemes in precious metals sales.

What You Need To Do

• Conduct immediate fraud risk assessments on precious metals sales scripts, disclosures, and pricing markups to ensure no material misrepresentations or undisclosed overcharges
• Enhance senior investor protections, including suitability reviews, cooling-off periods, and training on vulnerable customer targeting bans
• Review controlling person policies for good faith oversight, documenting supervisory failures to avoid personal liability
• Audit parallel SEC/CFTC exposures in commodity-linked activities, preparing for offset calculations in multi-agency actions
• Update compliance manuals with this case as precedent for CEA fraud in physical commodities; monitor whistleblower notices for internal reporting incentives

Key Dates

References

• [1] cftc.gov/PressRoom/PressReleases/9139-25
• [2] cftc.gov/media/12781/enfSafeguardMetalsLLCDecision093025/...
• [3] whistleblower.gov/notices/2025-015
• [4] oag.maryland.gov/News/Pages/Office-of-Maryland-Attorney-G...
• [5] nasaa.org/77724/states-cftc-final-judgment-precious-metal...
• [6] cftc.gov/media/12776/enfSafeguardMetalsLLCJudgementOrder0...
• [7] securities.utah.gov/2025/10/17/utah-division-of-securitie...
• [8] finance.idaho.gov/department-of-finance-cftc-and-29-state...