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David Miller to lead CFTC enforcement, signals shift from 'regulation by enforcement'

Created at 10 Jul · 3:40 AM1 source↑ Market-relevant
IN SHORT

David Miller, the new director of enforcement at the Commodity Futures Trading Commission, has indicated a departure from the agency's previous approach of "regulation by enforcement," aiming to reform the commission's practices.

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Who's Involved

David Miller
new director of enforcement at the CFTC
CFTC
Commodity Futures Trading Commission

↳ Why This Matters

The CFTC plays a crucial role in regulating derivatives markets in the U.S. A change in its enforcement strategy could significantly impact financial institutions and market participants operating under its purview, potentially altering compliance costs and risk management approaches.

Key facts

  • David Miller has been appointed as the new director of enforcement at the Commodity Futures Trading Commission (CFTC).
  • Miller stated his intention to move away from the practice of "regulation by enforcement."
  • He indicated that the era of "trying to exact a tax on an industry through various types of regulatory action is done."

David Miller, the newly appointed director of enforcement at the Commodity Futures Trading Commission (CFTC), has signaled a significant shift in the agency's operational philosophy. In an interview with Risk.net, Miller explicitly stated his intention to move away from what he termed "the era of regulation by enforcement." He emphasized that the approach of "trying to exact a tax on an industry through various types of regulatory action is done." This suggests a potential recalibration of how the CFTC will pursue enforcement actions moving forward, moving from a punitive model to potentially a more collaborative or rule-based approach.

Frequently asked questions

David Miller is the new director of enforcement at the Commodity Futures Trading Commission (CFTC).

It refers to a regulatory approach where agencies primarily use enforcement actions and penalties to shape industry behavior, rather than proactive rule-making or guidance.

It suggests a potential shift away from a punitive enforcement model towards a more rule-based or collaborative approach to regulation.

What Happens Next

01Further details on Miller's new enforcement strategy are expected.
02Market participants will observe changes in CFTC enforcement actions.

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Cadence

How It Developed

David Miller appointed CFTC director of enforcement.
Miller signals an end to 'regulation by enforcement' era.
He aims to move away from using regulatory actions to tax industries.

Sources

T1
Well-drilled: David Miller is CFTC’s top cop on the beatRisk.net

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