CFTC rescinds no‑deny settlement policy
The CFTC rescinded its no‑deny settlement policy and will not enforce existing no‑deny clauses, freeing defendants in CFTC enforcement matters to settle while publicly denying the allegations.
Change
On 3 June 2026, the Commodity Futures Trading Commission rescinded Appendix A to Part 10's no‑deny settlement policy and said it will not enforce existing no‑deny provisions.
Why it matters
The Commission removed an explicit barrier that previously blocked settlements where defendants preserved public denials, widening the set of negotiable settlement terms available in enforcement matters. The rescission also directs that the Commission will not enforce no‑deny provisions already entered in prior settlements, altering the enforceability of those clauses going forward.
Implications
- — Defense counsel negotiating CFTC enforcement settlements must reassess whether to preserve clients' ability to publicly deny allegations as a settlement term, because the Commission can now accept offers that retain such denials.
- — Derivatives firms and individuals bound by existing CFTC no‑deny settlement provisions must factor in that the Commission will no longer enforce those clauses, removing a prior constraint on public statements about settled matters.
Who is affected
- — Defense counsel negotiating CFTC enforcement settlements
- — Derivatives firms and individuals bound by existing CFTC no‑deny settlement provisions