“CFTC Issues Rules Covering Market Manipulation and Fraud,”
On July 14, 2011, the Commodity Futures Trading Commission (the “CFTC” or the “Commission”) adopted two rules (the “Rules”) implementing the CFTC’s expanded anti-manipulation and anti-fraud authority under Section 753 of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”).
Section 753 of the Dodd-Frank Act amends Section 6(c) of the Commodity Exchange Act (the “CEA”) to expand the CFTC’s authority to prohibit fraudulent and manipulative behavior. The CFTC set forth two new rules pursuant to CEA Section 6(c). The Rules fall within Part 180 of the CFTC’s regulations.
This Stroock Special Bulletin highlights the major provisions of the Rules and the CFTC’s explanations and clarifications regarding certain issues under the Rules.