BlockBeats news, August 29, according to the U.S. Commodity Futures Trading Commission (CFTC) documents, the CFTC today issued a filing and settlement charges against Nasdaq Futures, formerly the Designated Contract Market (DCM). The order determined that Nasdaq Futures failed to properly formulate, monitor or enforce rules related to the incentive plans provided by Nasdaq Futures to certain traders on its DCM, requiring Nasdaq Futures to pay a civil penalty of $22 million.
It is reported that from July 2015 to July 2018, Nasdaq Futures operated as a DCM focusing on energy commodity futures contracts. Nasdaq Futures provided various incentive plans to certain traders in its contract market, including its "Designated Market Maker" (DMM) plan. This volume-based component was not disclosed to the CFTC as required by the CEA and related regulations.