TechFlow news — The U.S. Commodity Futures Trading Commission (CFTC) has issued a disciplinary order against Nasdaq Futures, Inc. (formerly a designated contract market), requiring it to pay a $22 million civil monetary penalty. The CFTC found that Nasdaq Futures failed to properly establish, monitor, or enforce rules related to incentive programs it offered to certain traders on its designated contract market.
In addition, Nasdaq Futures failed to adequately disclose the details of the incentive program to the CFTC or the public as required under the Commodity Exchange Act and Commission regulations, and made false and misleading statements to the CFTC regarding the program.
The investigation revealed that from July 2015 to July 2018, while operating a designated contract market for energy commodity futures contracts, Nasdaq Futures maintained an undisclosed volume-based incentive component within its "Designated Market Maker" (DMM) program.
