CFTC Whistleblower Office Issues Alert Seeking Tips Relating to Carbon Markets Misconduct

In view of the increasing significance of carbon markets in an effort to reach the climate goals of the Paris agreement, the Commodity Futures Trading Commission, CFTC, has issued a press statement in this context. Specifically, the CFTC announces the issuance of an alert to encourage whistleblowing on market misconduct relating to energy trading and specifically to carbon markets trading. The alert thereby describes
– why the reporting of market abuse is so important;
– what to do, if fraudulent market activity has been observed / and or is suspected; and
– what types of misconduct may be reported.
With respect to latter, the CFTC provides the following list:
Reportable carbon market fraud

In the alert, the CFTC also notes that the reporting of market abuse is not exclusively reserved to „insiders“ of firms engaged in fraudulent market behaviour. ANYONE, including legal entities and regulators, can report suspected fraud. Additionally, the Commission emphasizes that whistleblowers do not have to fear retaliation, as any information provided to the CFTC is treated with the utmost confidentiality. Finally, the Commission highlights that successful whistleblowing entitles to the collection of awards, ranging from 10% to 30% of the monetary penalties imposed on firms that have engaged in market misconduct.
##### Instructions for the filing of a whistleblower report as well as the form itself to be used for filing may be found on the CFTC’s website at: https://www.whistleblower.gov/overview/submitatip.