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March 19, 2024

CFTC Must Do More to Combat Financial Crime in the Derivatives Markets

WASHINGTON, D.C.—Cantrell Dumas, Director of Derivatives Policy, issued the following statement in connection with the filing of a comment letter to the Commodity Futures Trading Commission (CFTC) in response to a proposed rule that aims to establish safeguards for the funds and assets of clearing members in the event of a derivatives clearing organization (DCO) declaring bankruptcy.

“The recent proposal by the CFTC to protect customers from bankruptcies in the derivatives market falls short of addressing the full range of risks, including combatting financial crime. The rule’s limited focus on segregating customer funds, though important, fails to address money laundering, leaving a gaping hole in the regulatory framework, especially when retail customers interact directly with clearing houses as opposed to intermediaries, where there already are serious protections against these crimes.

“The CFTC’s attempt to address the repercussions of the FTX bankruptcy by proposing rules to protect DCOs’ clearing members is a good, although very limited idea. However, fully collateralized direct-to-consumer marketplace simply must have the full panoply of customer protections. The proposed rulemaking does not do this and, therefore, instead of seizing the opportunity to make comprehensive changes, the CFTC has adopted a piecemeal strategy that will require additional modifications in the future if customers are to be adequately protected. The proposed rulemaking should have provided parallel protections for customers of intermediaries and clearing members while also preventing criminals from using the financial system for illegal activities like money laundering and funding terrorism.”

You can read our full public comment letter here.


Better Markets is a non-profit, non-partisan, and independent organization founded to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit

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