Difference between revisions of "CFTC Whistleblower Program"

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On May 25, 2016, the CFTC ordered [https://www.cftc.gov/PressRoom/PressReleases/7371-16 Citibank to pay $250 million] for attempted manipulation and false reporting of USD ISDAFIX benchmark-swap rates.  According to a CFTC [https://www.cftc.gov/PressRoom/PressReleases/7371-16 press release], Citibank traders “attempted to manipulate and made false reports concerning the USD ISDAFIX by skewing the Bank’s USD ISDAFIX submissions . . . in order to benefit the Bank’s trading positions at the expense of its derivatives counterparties.”  The CFTC uncovered [https://www.cftc.gov/sites/default/files/idc/groups/public/@newsroom/documents/file/citibankmisconduct052516.pdf numerous instances] of Citibank’s USD ISDAFIX misconduct through the bank’s exotic traders’ instant messages.  In March 2008, one of Citibank’s exotics traders stated in separate instant messages to other market participants that “[I] moved the screen btw” and “[I] moved the screen to 183 on 2s10s…[One of Citibank’s swaps traders] is pretty good at it,” and “[I] push the 2s10s swap on the screen to 183.4, very proud of myself.”
On May 25, 2016, the CFTC ordered [https://www.cftc.gov/PressRoom/PressReleases/7371-16 Citibank to pay $250 million] for attempted manipulation and false reporting of USD ISDAFIX benchmark-swap rates.  According to a CFTC [https://www.cftc.gov/PressRoom/PressReleases/7371-16 press release], Citibank traders “attempted to manipulate and made false reports concerning the USD ISDAFIX by skewing the Bank’s USD ISDAFIX submissions . . . in order to benefit the Bank’s trading positions at the expense of its derivatives counterparties.”  The CFTC uncovered [https://www.cftc.gov/sites/default/files/idc/groups/public/@newsroom/documents/file/citibankmisconduct052516.pdf numerous instances] of Citibank’s USD ISDAFIX misconduct through the bank’s exotic traders’ instant messages.  In March 2008, one of Citibank’s exotics traders stated in separate instant messages to other market participants that “[I] moved the screen btw” and “[I] moved the screen to 183 on 2s10s…[One of Citibank’s swaps traders] is pretty good at it,” and “[I] push the 2s10s swap on the screen to 183.4, very proud of myself.”
='''Whistleblowers Will Continue to Drive Increased CFTC Enforcement Activity'''=
The FY20 reports of the [https://www.whistleblower.gov/sites/whistleblower/files/2020-11/FY20%20Report%20to%20Congress.pdf CFTC Whistleblower Program] and [https://www.cftc.gov/PressRoom/PressReleases/8323-20 CFTC Division of Enforcement] reveal that the CFTC Whistleblower Program continues to grow and is helping to drive record-level enforcement activity.  The Division of Enforcement reported a total of $1,327,869,760 in monetary relief ordered—the fourth-highest total in CFTC history, the third straight year-over-year increase, and the second straight year in excess of $1 billion.  Approximately 30 to 40% of the CFTC’s ongoing investigations now involve some whistleblower component.  Since the inception of the [https://www.zuckermanlaw.com/cftc-whistleblower-reward-lawyers/ CFTC Whistleblower Program], CFTC enforcement actions associated with whistleblower awards have resulted in sanctions orders totaling more than $3 billion.  In light of the CFTC’s recent whistleblower award of [https://www.zuckermanlaw.com/cftc-shows-whistleblowers-the-money-implications-of-record-200-million-award/ $200 million], whistleblowers will continue to play a pivotal role in enabling the CFTC to carry out its vital enforcement mission.


='''Anonymous Whistleblowing to the CFTC'''=
='''Anonymous Whistleblowing to the CFTC'''=