On July 19, 2021, CME Group Inc. (the CME), the parent company of derivatives exchanges including the Chicago Mercantile Exchange and New York Mercantile Exchange, issued a Market Regulation Advisory Notice amending prior guidance on prohibited disruptive trading practices. The CME’s amended Advisory Notice RA2107-5 (Advisory Notice), took effect on August 2, 2021, and impacts the types of trading behavior for which individual traders and their employers may be held liable.

The Advisory Notice underscores the CME’s expectations in two key areas: market participants’ internal controls for risk management; and the integrity of messaging data that traders submit to the CME. The Advisory Notice sets forth scenarios under which compliance failures in either of these two areas might constitute a disruptive trading practice. Of course, violations of CME’s disruptive trading practice rules can result in significant fines, a bar from exchange access, and follow on enforcement actions from other market regulators. Thus, it is significant that the Advisory Notice takes aim at internal controls that are not typically associated with market manipulation but can nonetheless result in regulatory enforcement.

Click here to read the full article on Bloomberg Law.

Perkins Coie LLP White Collar & Investigations partners Lee Richards III and David Massey are joined by Eric Grossman, the Chief Legal Officer of Morgan Stanley, for an in-depth discussion of hot topics in the financial services enforcement area, including big banks’ readiness for another financial crisis; Environmental, Social, and Governance (ESG) investing; the “gamification” of trading; SPACs; corporate criminal investigations and resolutions; and the influence of politics on law enforcement. Mr. Grossman also reflects on the importance of diversity and inclusion in the legal profession.

Listen to “Discussion with Eric F. Grossman, Chief Legal Officer, Morgan Stanley” on Spreaker.

 

In this post, Perkins Coie attorneys discuss a U.S. Federal Trade Commission settlement regarding its most recent law enforcement action to monitor the marketplace for misleading cannabidiol product claims. The action targets Kushly Industries LLC and the company’s sole officer for allegedly making false or unsupported health benefit claims about Kushly’s CBD product.

Read the full post at Perkins Coie’s Cannabis Legal Highlights blog at FTC Continues Crackdown on Unsupported CBD Marketing.

In recognition of Mental Health Awareness Month, we are highlighting the use and application of trauma-informed investigation techniques during internal investigations.

In this episode, Perkins Coie White Collar & Investigations partners Gina LaMonica and Caryn Trombino are joined by Dr. Brenda Ingram, EdD, LCSW, of the University of Southern California, to discuss conducting trauma-informed investigations at higher education institutions and the increasing use of these techniques during internal investigations in corporate settings.

Dr. Ingram, who serves as the Director of Relationship and Sexual Violence Prevention and Services at USC Student Health, shares her experience in conducting survivor-centered investigations in cases of sexual and racial trauma and other instances of power-based harm. She also reflects on how corporate employers can deploy trauma-informed investigative techniques and foster a work environment that addresses power imbalances that can lead to employee trauma.

Listen to “Trauma-Informed Investigation Techniques in the Workplace – Episode 28” on Spreaker.

In this post, Perkins Coie attorneys explore the statutory ambiguities that are prompting some in the hemp industry to “lawfully” sell hemp-derived Delta-8 THC. Entrepreneurs have swiftly responded to the current loophole and a Delta-8 market has exploded.

Read the full post at Perkins Coie’s Cannabis Legal Highlights blog at Delta-8: A New Low in Highs | Cannabis Legal Highlights.

Perkins Coie LLP White Collar & Investigations partners Lee Richards and Margaret Meyers are joined by the Hon. Denny Chin of the U.S. Court of Appeals for the Second Circuit to discuss litigating in the federal district and appellate courts. Informed by his 26 years of federal experience, Judge Chin shares some best practices for attorneys appearing in the district and appellate courts, describes his experience sentencing white-collar criminal defendants under the post-Booker guidelines, and reflects on the importance of diversity in the legal profession. Continue Reading Discussion with the Honorable Denny Chin

During the investigation process, survivor-centered, trauma-informed techniques are used to keep investigation participants empowered and safe—physically, emotionally, and economically. Arising from sexual abuse and domestic violence contexts, these techniques are now being recognized for their usefulness and success in more traditional corporate settings. Continue Reading Will Survivor-Centered, Trauma-Informed Techniques Revolutionize Workplace Investigations?

Perkins Coie White Collar & Investigations Partner Caryn Trombino talks with Stephen Ravas, Counsel to Inspector General at AmeriCorps Office of Inspector General, about his experience in various roles at several federal Offices of Inspector General—including at the U.S. Department of Commerce, the U.S. Department of Homeland Security, and now AmeriCorps.
Continue Reading An Insider’s View on Responding to Federal OIG Investigations

White Collar Partner Kevin Feldis speaks with Tony Davis, chief executive officer and chief information officer of Inherent Group, a value-based investment company that uses environmental, social, and governance factors to make investment decisions. Kevin and Tony outline key ESG factors, describe how focusing on these factors can create value for companies, and also discuss the risks involved with failing to do so. Additionally, they offer insights into how the U.S. Securities and Exchange Commission’s creation of a new Climate and ESG Task Force within the Division of Enforcement may affect how companies evaluate and disclose ESG compliance.

Listen to “ESG Rewards, Risks, Compliance, and Tips – Episode 25” on Spreaker.

Chelsea Curfman and Markus Funk are joined by Professor Mike Koehler, better known as the “FCPA Professor.” In 2009, Koehler launched his “FCPA Professor” blog, described as “the Wall Street Journal concerning all things FCPA-related.” During the conversation he reflects on his professional road to becoming “The FCPA Professor,” tracks the evolution of the blog, shares his critical views on what he terms “FCPA Inc.,” and charts what he sees as future U.S. Department of Justice enforcement under the Biden administration.

Listen to “A Candid Conversation with the “FCPA Professor” Mike Koehler – Episode 24” on Spreaker.