2025-01724RuleWallet

CFTC Hikes Fines for Traders to Match Inflation Creep

Published Date: 1/24/2025

Rule

Summary

Starting January 24, 2025, the Commodity Futures Trading Commission is raising the maximum fines for breaking trading rules to keep up with inflation. This means anyone who violates these rules after January 15, 2025, could face bigger penalties. It’s the government’s way of making sure fines stay fair and effective over time.

Analyzed Economic Effects

3 provisions identified: 0 benefits, 3 costs, 0 mixed.

Higher CMPs for Non‑Manipulation Violations

If you violate commodity trading rules (non‑manipulation) and are assessed a civil monetary penalty after January 15, 2025, the CFTC raised several maximum fines. For example, the maximum under 7 U.S.C. 9 for a person other than a registered entity is now $206,244 (up from $201,021), the maximum under 7 U.S.C. 13a for a registered entity or its officers is now $1,136,100, and the 7 U.S.C. 13a‑1 civil injunctive maximum is now $227,220.

Big Increase for Manipulation Penalties

If you commit manipulation or attempted manipulation and are assessed a penalty after January 15, 2025, the CFTC raised the maximum civil monetary penalty to $1,487,712 for multiple categories (for example under 7 U.S.C. 9, 13a, and 13a‑1).

Inflation Formula and Applicability Dates

The CFTC used a cost‑of‑living multiplier of 1.02598 (based on October 2024 CPI‑U divided by October 2023 CPI‑U) to increase CMP maximums and rounded to the nearest dollar. The adjusted CMPs apply to penalties assessed after January 15, 2025, including penalties for violations that occurred on or after November 2, 2015.

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Key Dates

Published Date
Rule Effective
1/24/2025
1/24/2025

Department and Agencies

Department
Independent Agency
Agency
Commodity Futures Trading Commission
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