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CFTC Enforcement Names Five Priorities, Including Insider Trading and AML Violations

According to CFTC enforcement director David I. Miller, the agency has set five enforcement priorities and will investigate insider trading in prediction markets alongside AML and KYC violations.

Summary

On April 1, CFTC enforcement director David I. Miller said the U.S. derivatives regulator has identified five enforcement priorities, including insider trading, market manipulation, retail fraud, and AML and KYC violations. Miller also said prediction markets are subject to insider trading rules, and that the agency has active investigations underway with prosecutions planned.

Terms & Concepts
  • AML/KYC: Anti-money laundering and know-your-customer rules used to verify customers, monitor transactions, and reduce illicit finance risks.
  • Insider trading: Trading based on material nonpublic information, which regulators treat as an unfair and potentially illegal market advantage.
  • Prediction markets: Markets for contracts tied to future event outcomes, which Miller said are also subject to insider trading rules.