Rescission of Policy Relating to the Acceptance of Settlements in Administrative and Civil Proceedings
Key claim: The CFTC is rescinding its longstanding policy that limited respondents’ and defendants’ ability to deny allegations after settling administrative or civil proceedings.
Abstract
(Rule · Commodity Futures Trading Commission) The Commodity Futures Trading Commission (“CFTC” or “Commission”) is rescinding a policy contained in an appendix to its regulations concerning acceptance of settlements in administrative and civil proceedings. This policy is commonly understood to limit a respondent’s or defendant’s ability to deny allegations following settlement.
Why this matters
The rescission changes the practical calculus of settling with the CFTC: respondents can now resolve enforcement matters without accepting a gag on denying the underlying allegations, which may make settlement more attractive but weakens the deterrent and reputational signal of a settled action. This shift affects how banks, trading firms, and individuals in derivatives markets weigh settlement versus litigation, and how the public interprets consent orders.