New Regulations by Commodity Trading Commission

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If there is something that the Obama administration is remembered for, it’s the Commodity Trading Commission. This is a commission that had established itself as the most aggressive institution on the Wall Street following years when it was considered as a sleepy federal black water. News have emerged that the Commodity Futures Trading Commission is about to implement a new law enforcement strategy. For starters, the commission has a broad of jurisdictions. For instance, it’s supposed to police several markets in the United States. At the same time, the commission is charged with overseeing the financial machinery where it deals with trading in commodities. It’s also charged with overseeing digital currencies. Finally, it’s the role of the institution to oversee the complex derivatives that were responsible for ending the 2008 financial meltdown. The body is expected to implement a new set of rules that will affect financial institutions and banks. Through these recommendations, these institutions will be forced to come clean on their own about a problem or a misconduct when conducting business in the market. The new framework will be unveiled on Monday by James McDonald who is the director of the enforcement agency. This will take place at the University of New York.

According to the body, there is a belief that large financial institutions could act as allies of law enforcement agencies if presented with an opportunity. The director will say that they believe in the shared conception that many businesses in the US want to be on the safe side of the law. The draft speech was presented to the New York Times. The speech notes that mistakes can happen even with companies with good intentions. At the same time, a few bad actors may have the motive to benefit themselves. The speech continues by saying that whenever an institution detects a misconduct, the decision whether they will report the issue is determined by their perception of how they will be judged. They ask themselves whether they will be treated fairly. With this new approach, a financial institution can come clean about a deal gone bad. This means cooperating with law enforcement officers as they investigate the problem. This benefits the business as it has the potential to save a lot of money. Depending on the severity of an offense, the Commodity Futures Trading Commission can impose fines that range from a few hundred thousand dollars to hundred million dollars. Complying enables the fine to be reduced by over 75 percent.

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