On February 12, 2019, for the first time in its history, the Commodity Futures Trading Commission (“CFTC”) announced the release of 2019 examination priorities for each of its regulatory Divisions.  CFTC Chairman J. Christopher Giancarlo stated that “[t]his first-ever publication of division examination priorities is in line with Project KISS and other agency initiatives to improve the relationship between the agency and the entities it regulates, while promoting a culture of compliance at our registrants.”  Other regulatory agencies, such as the U.S. Securities and Exchange Commission (“SEC”) and the Financial Industry Regulatory Authority (“FINRA”), traditionally publish annual examination priorities.  The CFTC 2019 examination priorities focus on ensuring that CFTC registrants have sufficient compliance mechanisms in place to effectively self-regulate in accordance with the CFTC’s regulatory priorities.  Registrants should consider this announcement as signaling an increase in the CFTC’s attention to its supervisory efforts and as a potential precursor to increased enforcement activity.
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