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
Trauma-Informed Investigation Techniques in the Workplace
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…
Will Survivor-Centered, Trauma-Informed Techniques Revolutionize Workplace Investigations?
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.
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An Insider’s View on Responding to Federal OIG 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.
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AI for ABAC: Using Artificial Intelligence to Support Anti-Corruption Compliance
In this episode, Perkins Coie White Collar & Investigations partners Gina LaMonica and Caryn Trombino discuss the role of artificial intelligence in anti-bribery and anti-corruption (ABAC) compliance programs. Our guest, Megan Zwiebel, from The Anti-Corruption Report (anti-corruption.com), joins us to discuss her research into the use of AI in compliance programs, including trends in AI-based…
DOJ Now Publishing Names of Active Compliance Monitors
On April 14, 2020, the U.S. Department of Justice made a long-awaited move towards enhanced transparency into the corporate compliance monitorship selection process in launching a new webpage that lists the names of all independent compliance monitors for the Fraud Section’s thirteen active monitorships. Seven of the active monitorships are associated with the FCPA Unit,…
Four “Day One” Guideposts to High-Integrity Results in Higher Ed Investigations
When administrators of colleges and universities first learn of misconduct, abuse, or neglect allegations within their communities—especially those involving wrongdoing committed by beloved mentors or authority figures within the institution—it is critical that the institution react swiftly and thoughtfully by conducting appropriately-scaled, rigorous, and credible investigations. Such investigations are primarily focused on establishing what factually…
CFTC, Market Regulators Forecast Aggressive Enforcement Trends, High Bar for Cooperation
The CFTC filed a record number of enforcement actions in 2019 against market participants, the majority of which involved commodities fraud, market manipulation, and spoofing. As a result of these actions, the CFTC reports that it obtained over $1.3 billion in monetary sanctions and disgorgement in 2019—a 39% increase over the prior fiscal year. And at this year’s ABA Derivatives & Futures Law Committee Winter Meeting, regulators from the CFTC and ICE warned market participants to expect these enforcement trends in spoofing and market manipulation to continue into 2020.
CFTC Seeks Parallel Enforcement with Market Regulators, but Coordinated Resolutions Scarce
The CFTC’s Chief Counsel of the Division of Enforcement, Gretchen Lowe, commented that protecting market integrity continues to be a top priority at the CFTC. She noted that Enforcement is particularly focused on spoofing and market manipulation, as well as matters involving regulatory infractions, such as registrants’ reporting obligations, failure to supervise, business conduct standards, and adequacy of remediation efforts.
Lowe also signaled that Enforcement will continue to pursue “parallel cooperative enforcement efforts” with both domestic and foreign market regulators—including SROs and criminal enforcement authorities in the spoofing context. ICE Futures U.S. Enforcement Counsel, Frances Mendieta reinforced that the lines of communication are “very open” between ICE and the CFTC, and that the regulators may share information with each other over the course of an investigation.
However, despite such extensive interplay between the regulators, coordinated or “global” resolutions appear to be the exception, rather than the rule. Both Lowe and Mendieta suggested that the sequential nature of the regulators’ respective investigations can make it difficult to coordinate settlements. Consequently, while regulators seem keen to build on each other’s investigations, the resolutions often occur months, or sometimes years apart, which can leave market participants in protracted cycle of enforcement involving the exact same conduct.
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DSIO and NFA Share Views on Evolving Swap Dealer Oversight
The U.S. Commodity Futures Trading Commission’s (CFTC) Director of the Division of Swap Dealer & Intermediary Oversight (DSIO), alongside fellow panelist and National Futures Association’s (NFA) General Counsel, fielded wide-ranging questions from co-panelists and audience members alike in a discussion focused on Intermediaries & Advisors at the ABA’s Derivatives & Futures Law Committee Winter Meeting in Naples, Florida (January 23-25, 2020). Chief among the topics addressed were views regarding DSIO and NFA’s evolving approach to swap dealer oversight, particularly on the heels of DSIO’s recently issued guidance on the Chief Compliance Officer Annual Report for futures commission merchants, swap dealers, and major swap participants.
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UK Regulator Sets High Bar for Corporate Cooperators
Last month, the UK Serious Fraud Office (“SFO”) published non-binding, internal guidance expanding on its view of corporate cooperation in prosecutions. The guidance marks a notable departure from the SFO’s past reluctance to clarify its expectations for corporations seeking cooperation credit, while still making it clear that no outcome will be “guaranteed,” even for companies that have provided “full, robust” cooperation. Rather, cooperation is just “one of many factors” that the SFO will consider when making a charging decision.
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