WASHINGTON, May 19, 2026 — The U.S. Commodity Futures Trading Commission on Tuesday issued a new enforcement cooperation policy establishing formal standards for voluntary self-reporting, cooperation credit, remediation and potential declinations in enforcement matters.
In a statement, the CFTC said the Division of Enforcement’s advisory takes effect immediately and supersedes prior policies governing self-reporting, cooperation and remediation.
The agency said the framework is intended to provide greater transparency and consistency regarding how the Division of Enforcement evaluates cooperation and determines whether to recommend enforcement actions to the Commission.
Under the policy, the Division of Enforcement said it will not recommend an enforcement action where a party voluntarily self-reports misconduct, provides full cooperation, undertakes timely and appropriate remediation, and provides full restitution or disgorgement, absent aggravating circumstances.
Self-reporting and declination standards
The advisory establishes formal criteria governing what qualifies as a voluntary self-report under the new framework.
According to the policy, a self-report must be made voluntarily, in good faith and within a reasonably prompt period after misconduct becomes known. The policy also states that parties must disclose all material non-privileged information in their possession concerning the misconduct.
The framework additionally states that a self-report may still qualify as voluntary even if the CFTC already possesses independent knowledge of the misconduct.
The advisory also outlines aggravating circumstances that may preclude declinations, including pervasive intentional or reckless misconduct by senior management, recidivist misconduct and violations causing particularly significant aggregate harm.
In cases where a party is ineligible for a declination but nevertheless provided good-faith self-reporting, cooperation, remediation and restitution, the policy establishes recommended civil monetary penalty reductions of at least 50% where a self-report did not qualify as voluntary, or at least 25% where aggravating factors preclude declination.
The Division of Enforcement said cooperation credit in other matters generally would not exceed a 25% reduction from the agency’s calculated penalty recommendation absent extraordinary circumstances.
Compliance, remediation and enforcement transparency
Michael S. Selig said the policy is intended to strengthen enforcement efficiency while encouraging market participants to cooperate with regulators.
“Policing our markets for insider trading, fraud, and other abuses remains a top priority,” Selig said in a statement. He added that the advisory is intended to “provide clarity, promote consistency, and reinforce the division’s commitment to transparency in its enforcement practices.”
The advisory also establishes detailed expectations regarding remediation and compliance controls.
According to the framework, parties seeking cooperation credit are expected to conduct root-cause analyses, implement effective compliance and ethics programs, preserve business records and undertake appropriate disciplinary measures against responsible individuals.
The policy also addresses document preservation, overseas evidence production, internal investigations and the use of personal devices and messaging applications that could impair regulatory recordkeeping obligations.
David I. Miller said the framework is intended to create a clearer and more transparent enforcement process for market participants and potential defendants.
“The new cooperation policy provides a clear path to declinations,” Miller said in a statement. “It is also transparent and understandable to market participants and potential defendants.”
The advisory takes effect immediately and will serve as the Division of Enforcement’s exclusive policy governing self-reporting, cooperation and remediation matters.
