CFTC Division of Enforcement Issues New Cooperation Policy: What Commodities Market Participants Need to Know

On May 19, 2026, the Commodity Futures Trading Commission’s (CFTC or the Commission) Division of Enforcement (the Division) issued CFTC Letter No. 26-15, a new Staff Advisory setting forth the Division’s exclusive policy on self-reporting, cooperation, and remediation (the Policy). The Policy is effective immediately and supersedes all prior policies on these subjects, including the February 2025 Enforcement Advisory on Self-Reporting, Cooperation, and Remediation. The Division has also announced that it will release a new Enforcement Manual incorporating the Policy.

This alert summarizes the key provisions of the new Policy, explains the steps required to obtain cooperation credit or a declination, identifies important differences from the February 2025 Advisory, and outlines practical steps that commodities trading firms should consider.

Overview of the New Policy

The Policy is designed to incentivize responsible behavior by encouraging registrants and market participants to invest in effective compliance programs, voluntarily self-report potential misconduct, meaningfully cooperate with the Commission, and make good-faith efforts to remediate and prevent wrongdoing. It applies to all parties before the Division, including both entities and individuals.

The Policy’s stated objectives are to: (1) drive early, voluntary self-reporting of violations; (2) promote timely and effective enforcement of the Commodity Exchange Act (CEA) and CFTC Regulations, including holding culpable individuals accountable; (3) reduce market harm from violations; (4) facilitate prompt remedial action, including requiring parties to compensate those harmed by any violations and address compliance and internal control deficiencies; and (5) provide a transparent description of the Division’s policies and decision-making process. All resolutions under the Policy must be approved by the Director of Enforcement and, if applicable, submitted to the Commission for approval.

Steps for Obtaining Cooperation Credit

The new Policy establishes a three-part framework for cooperation credit, ranging from full declinations to more modest penalty reductions.

Part I: Securing a Declination from Enforcement

The Division will not recommend to the Commission that an enforcement action be instituted when all of the following factors are met: (1) the party made a Voluntary Self-Report to the CFTC; (2) the party provided Full Cooperation during the Division’s investigation; (3) the party effected Timely and Appropriate Remediation of the misconduct; (4) the party provided Full Restitution and/or Disgorgement, if applicable; and (5) there are no aggravating circumstances that preclude eligibility.

Aggravating circumstances that may preclude eligibility are limited to pervasive intentional or reckless misconduct by ownership or senior management; intentional or reckless misconduct occurring over an extended period; recidivist intentional or reckless misconduct; and instances in which the misconduct has caused particularly egregious aggregate harm. Notably, the Division retains discretion to grant a declination even in the presence of aggravating circumstances by balancing the severity of those circumstances against the party’s cooperation efforts. The Division may grant a declination either before or after full implementation of remediation or payment of restitution, depending on the circumstances.

Part II: Cooperation Credit for Good-Faith Self-Reports and Aggravating Factors

If a party provided Full Cooperation, Timely and Appropriate Remediation, and Full Restitution and/or Disgorgement but is ineligible for a declination because (1) its self-report was made in good faith but did not qualify as a Voluntary Self-Report and/or (2) aggravating factors preclude a declination, the Division will incorporate cooperation credit into its recommendation. The Division will recommend a civil monetary penalty reduction of at least 50% in matters where the party’s good-faith self-report did not qualify as a Voluntary Self-Report or at least 25% in matters involving aggravating factors. In either circumstance, the maximum recommended penalty reduction would be no more than 75%.

Part III: Cooperation Credit in Other Matters

Where a party is not eligible for relief under Part I or Part II, the Division retains discretion to award cooperation credit for any self-reporting and/or cooperation that did occur, provided the party has engaged in Timely and Appropriate Remediation and provided Full Restitution and/or Disgorgement. In such matters, even if there has not been both a Voluntary Self-Report and Full Cooperation throughout the investigation, the Division may recommend, based on the facts and circumstances and absent extraordinary circumstances, no more than a 25-percent reduction to the Division’s good-faith calculated penalty.

Defined Terms Under the Policy

The Policy introduces four defined terms that are central to the cooperation framework.

Voluntary Self-Report

A self-report must satisfy all of the following requirements to qualify as a “Voluntary Self-Report”: the report may be made to any division of the CFTC; the report must be made in good faith, considering the circumstances, timing, completeness, and level of transparency; the report must be made voluntarily before any known or reasonably anticipated imminent threat of disclosure through a whistleblower, the media, or other channels, or before any known or reasonably anticipated imminent threat of an investigation by an exchange, self-regulatory organization, or state or federal governmental entity; and the party must disclose the misconduct within a reasonably prompt time after becoming aware of the misconduct, with the burden on the party to demonstrate timeliness. The Division expects registrants to report misconduct at the earliest possible opportunity and not defer disclosure until a routine or periodic reporting date. The party must report all material, non-privileged information in its possession or control about the misconduct, even when the party has incomplete information or an ongoing internal investigation. The party must also have fulfilled any statutory or regulatory obligation in a timely manner to provide related information to the CFTC after becoming aware of the misconduct.

Importantly, a voluntary, good-faith self-report will qualify as a Voluntary Self-Report, even if the CFTC already has independent knowledge of the misconduct. The Division also provides a safe harbor: it will not recommend charges under the CEA for any self-report later found to be inaccurate, provided the self-report was made in good faith and any inaccurate information is supplemented and corrected promptly after discovery.

Full Cooperation

“Full Cooperation” requires timely disclosure of all non-privileged, relevant information concerning the misconduct, including information gathered during any internal investigation; identification of all individuals involved in or responsible for the misconduct, regardless of position, status, or seniority, along with all relevant non-privileged information relating to those individuals; attribution of information to specific sources where doing so does not violate any privilege; and rolling, timely updates regarding any internal investigation. Full Cooperation also requires proactive cooperation, including disclosure of relevant information even when not specifically requested and identification of opportunities for the Division to obtain evidence is not in the party’s possession. Parties must provide timely preservation, collection, and production of relevant documents and information, including production of overseas documents with relevant custodian and author information, facilitation of third-party document production, and provision of accurate translations of relevant foreign-language documents when requested.

Parties bear the burden of establishing any asserted prohibitions on production under foreign law and must identify reasonable, lawful alternatives. Parties must deconflict internal investigative steps with the Division’s requests, including delaying interviews for limited periods when specifically requested. Subject to individuals’ Fifth Amendment rights, the party must make officers, employees, and agents with relevant information available for interviews, including, where possible, individuals located overseas and former employees. The Division will take into consideration the size, sophistication, and financial condition of the cooperating party when assessing the scope, quantity, quality, impact, and timing of cooperation.

Timely and Appropriate Remediation

The Policy requires a thorough root-cause analysis of the misconduct and, where appropriate, implementation of remediation measures designed to address those root causes. An effective compliance and ethics program must be implemented, calibrated to the size and resources of the organization and the risks associated with its business. The Policy identifies specific elements of an effective program, including a demonstrated commitment to compliance values; adequate resources dedicated to compliance; compliance personnel with necessary experience and skill; independence and authority of the compliance function with meaningful access to senior leadership; a risk-based compliance program tailored to the organization’s specific activities; compensation and promotion structures that incentivize compliance; ongoing testing and evaluation; and additional steps demonstrating acceptance of responsibility and commitment to reducing future misconduct risk.

Parties must appropriately discipline employees responsible for the misconduct, including both individuals who directly engaged in the wrongdoing and those who failed in their oversight responsibilities. The Policy also requires implementation of appropriate record-retention measures, including policies prohibiting the improper destruction or deletion of business records and adequate controls over the use of personal devices and messaging applications, including ephemeral messaging platforms, that could impair required record retention or compliance with legal obligations.

For individuals, remediation may include receiving additional ethics or professional training and certifications, retention of professionals such as accountants and financial consultants, and restrictions on certain business activities for defined periods.

Full Restitution and/or Disgorgement

The Division must agree that the party has created and/or implemented an appropriate plan to provide full restitution to those harmed by any violations, if applicable (“Full Restitution and/or Disgorgement”). A party may satisfy this obligation by making full restitution to those harmed even before reaching agreement with the Division, and the Division will give appropriate credit for proactive partial restitution. Where identifying all those harmed is impracticable, or complex issues would unduly delay restitution, the party must agree to a reasonable restitution plan acceptable to the Division. The Division must also agree that the party has created and/or implemented an appropriate plan for the disgorgement of all ill-gotten gains, if applicable.

Key Differences: May 2026 Policy vs February 2025 Advisory

The new Policy represents a significant departure from the February 2025 Advisory in several important respects.

Feature	February 2025 Advisory	May 2026 Policy
Declinations	Available only in “extraordinary circumstances,” such as first-to-report pervasive fraud with Exemplary Cooperation.	Clear, transparent path to declination when all five enumerated factors are met.
Self-Reporting Framework	Three-tier scale (No Self-Report, Satisfactory, Exemplary) with qualitative evaluations.	Binary determination of whether the self-report qualifies as a “Voluntary Self-Report” under defined criteria.
Cooperation Framework	Four-tier scale (No Cooperation, Satisfactory, Excellent, Exemplary).	Binary determination of whether the party provided “Full Cooperation” under defined criteria.
Penalty Reduction Structure	Matrix-based approach with presumptive percentage discounts ranging from 0% to 55% based on the intersection of self-reporting and cooperation tiers.	Fixed minimum reductions: at least 50% (good-faith self-report not qualifying as Voluntary Self-Report) or at least 25% (aggravating factors), with a maximum of 75% under Part II; up to 25% under Part III.
Remediation	Evaluated as a component of the cooperation assessment, with the relevant Operating Division assessing the remediation plan.	Standalone defined term (“Timely and Appropriate Remediation”) with detailed requirements including root-cause analysis, compliance program elements, employee discipline, and record retention.
Restitution and Disgorgement	Not eligible for Mitigation Credit.	Now a required element for obtaining a declination or cooperation credit, and affirmative credit is given for proactive restitution.
Self-Reporting Destination	Must be made to an “Appropriate Division,” defined as the Operating Division primarily responsible for the applicable regulation.	Report may be made to “any division of the CFTC.”
Record Retention and Ephemeral Messaging	Not specifically addressed.	Explicit requirement for policies addressing personal devices and ephemeral messaging platforms.
Aggravating Circumstances	Considered as general factors in the Division’s discretion.	Specifically defined and enumerated, including pervasive intentional or reckless misconduct by senior management, extended duration, recidivism, and egregious aggregate harm.
Operating Division Role	Operating Divisions played a central role in assessing remediation plans and determining the appropriateness of monitors and consultants.	The Policy does not reference Operating Division involvement in remediation assessment; remediation requirements are defined solely within the Policy.
Monitors and Consultants	Expressly addressed, with procedures for selection and reporting.	Not specifically addressed in the new Policy.
Applicability	Used the term “company” for entities and separately addressed individuals.	Applies uniformly to all “parties” before the Division, including both entities and individuals, with acknowledgment that certain remediation steps may be inapplicable to individuals.

Practical Steps for Commodities Trading Firms

In light of the new Policy, commodities trading firms should consider the following practical steps to update their policies, procedures, and compliance manuals.

Review and Update Self-Reporting Protocols. The new Policy creates a clear and transparent pathway to declinations, making voluntary self-reporting more valuable than ever before. Firms should ensure that their internal escalation and reporting procedures are calibrated to enable self-reporting at the earliest possible opportunity, as the Policy expressly expects registrants to report misconduct promptly and not defer disclosure until a routine or periodic reporting date. Compliance manuals should clearly define the chain of command for escalating potential violations and identify the personnel authorized to initiate self-reports to any division of the CFTC.

Establish Internal Investigation Protocols Aligned with Full Cooperation Requirements. The Full Cooperation standard requires proactive cooperation and identification of all individuals involved in or responsible for misconduct, regardless of position, status, or seniority. Firms should develop or update internal investigation procedures that include protocols for the timely preservation, collection, and production of relevant documents; attribution of information to specific sources; and rolling, timely updates to the Division during any internal investigation. Investigation protocols should also address the deconfliction obligation, requiring coordination with the Division’s requests, including the potential need to delay interviews for limited periods.

Strengthen Record Retention Policies, Particularly for Personal Devices and Ephemeral Messaging. The Policy introduces an explicit requirement that firms implement policies prohibiting the improper destruction or deletion of business records and maintain adequate controls over the use of personal devices and messaging applications, including ephemeral messaging platforms, that could impair required record retention or compliance with legal obligations. Firms should review and update their record retention policies and acceptable-use policies to ensure they address the full range of communication platforms used by employees, including popular ephemeral messaging applications.

Conduct a Root-Cause Analysis Framework Assessment. The Timely and Appropriate Remediation standard requires a thorough root-cause analysis of any misconduct and the implementation of remediation measures designed to address those root causes. Firms should build or enhance internal capabilities to conduct root-cause analyses promptly upon identification of potential violations and ensure that compliance teams are equipped and empowered to design and implement corrective action plans.

Evaluate Compliance Program Elements Against the Policy’s Benchmarks. The Policy provides a detailed list of elements that an effective compliance and ethics program should include, such as adequate compliance resources, personnel with the necessary experience and skill, independence and authority of the compliance function, risk-based compliance design, compensation structures that incentivize compliance, and ongoing testing and evaluation. Firms should benchmark their existing compliance programs against these elements and address any gaps.

Update Disciplinary Policies. The Policy requires appropriate discipline of employees responsible for misconduct, including those who failed in their oversight responsibilities as well as individuals with supervisory authority over the relevant business area. Firms should ensure that their disciplinary policies and procedures are clear, consistently applied, and documented, as the ability to demonstrate appropriate disciplinary action will be essential to obtaining cooperation credit.

Prepare for Restitution and Disgorgement Obligations. Unlike the February 2025 Advisory, which excluded disgorgement and restitution from Mitigation Credit, the new Policy makes Full Restitution and/or Disgorgement a prerequisite for any cooperation credit or declination. Firms should develop internal processes for promptly calculating and paying restitution to those harmed by violations, as the Division will give appropriate credit for proactive partial restitution provided before reaching a resolution with the Division.

Train Key Personnel. Compliance officers, general counsel, senior management, and front/mid-office personnel (at a minimum) should receive training on the new Policy, including the specific requirements for Voluntary Self-Reports, Full Cooperation, Timely and Appropriate Remediation, and Full Restitution and/or Disgorgement. Training should emphasize the significant incentives the new framework provides for early self-reporting and the potentially severe consequences of failing to cooperate.