July 29, 2010
By Christopher Doering
The financial regulatory act signed into law this month gives the U.S. Commodity Futures Trading Commission significantly more regulatory muscle to crack down on misconduct in futures and other derivatives markets.
The nation's futures regulator may quickly seek to test its new powers under the Dodd-Frank Act to prevent market manipulation and disruptive trading practices, which could end decades of frustration for the agency caused by confusion over the law and a failure to prosecute traders.
In its 36-year history, the CFTC has successfully prosecuted and won only one manipulation case in the futures markets, a dismal record that has rattled agency officials intent on boosting market integrity. The CFTC has had far more success enforcing violations such as fraud and Ponzi schemes…
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Last Updated: August 5, 2010