The U.S. CFTC orders Nasdaq Futures to pay a fine of $22 million

ChainCatcher news, according to a document from the Commodity Futures Trading Commission (CFTC), the CFTC today issued a filing and settlement charges against Nasdaq Futures Inc. (formerly a Designated Contract Market (DCM)). The order found that Nasdaq Futures Inc. failed to properly establish, monitor, or enforce rules related to incentive programs offered to certain traders on its DCM, requiring Nasdaq Futures Inc. to pay a civil penalty of $22 million.

It is reported that from July 2015 to July 2018, Nasdaq Futures Inc. operated as a DCM focused on energy commodity futures contracts. Nasdaq Futures Inc. provided various incentive programs to certain traders on its contract market, including its "Designated Market Maker" (DMM) program. In accordance with the CEA and related regulations, this volume-based component was not disclosed to the CFTC.