The Commodities Futures Trading Commission (CFTC) has
expanded its definition of scienter (wilful wrongdoing) in its
recent anti-manipulation regulation, meaning
recklessness could now be regarded as intentional
On October 26 the CFTC proposed regulation to implement
Section 753 of the Dodd-Frank Act, concerning manipulation in
the futures and swaps markets.
The proposals draw heavily on the Securities and Exchange
Commission (SEC)s Rule 10b-5, which establishes the
criteria used to determine if manipulation takes place.
One such standard that must be...