On May 22, 2017, in one of its first official actions in the new administration, the U.S. Commodity Futures Trading Commission (CFTC) issued final rules amending its whistleblower program. These amendments serve to adopt anti-retaliation protections, clarify whistleblower incentives, and revise the award process. Whistleblower Awards Process, 82 Fed. Reg. 24487 (May 30, 2017) (amending 17 C.F.R. pt. 165) (Amendments). Once the amendments become effective on July 31, 2017, the CFTC’s whistleblower rules will more closely parallel the whistleblower program administered by the U.S. Securities and Exchange Commission (SEC). The new amendments represent the latest development in the ever-evolving landscape of regulatory programs designed to encourage whistleblowers to report financial misconduct. This article provides an overview of the CFTC’s program and the key amendments, as well as their potential impact on market participants.

Emergence of the Financial Regulatory Whistleblower Programs

Among the responses to the financial crisis embodied in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act), Congress authorized the creation of new whistleblower programs to be administered by the CFTC and SEC. Using parallel language, Congress established the two programs to offer bounties that would incentivize those with information about potential misconduct to report it to the authorities. The CFTC, which regulates the commodity futures, options, and swaps markets, and the SEC, which oversees the securities markets, promptly issued rules to implement their new whistleblower programs.