Not everyone within the CFTC supported the penalty. Republican Commissioner Caroline Pham dissented from the settlement order, arguing that such incentive programs are not uncommon and are crucial for market liquidity. She expressed concerns that the ruling could dissuade exchanges from employing similar programs.
“I am concerned that the CFTC’s anti-competitive speaking order will create confusion and discourage exchanges from maintaining liquid, efficient markets to promote accurate pricing and tight spreads,” Pham wrote in a statement.
Nasdaq $22M CFTC Fine : Nasdaq’s Response and Settlement
Nasdaq Futures Inc. chose to settle the case without admitting or denying the allegations. A Nasdaq spokesperson confirmed the settlement and stated, “Nasdaq sold NFX’s futures exchange business in November 2019 and is pleased to resolve this matter in cooperation with the CFTC.”
The Nasdaq $22M CFTC fine closes a chapter on a period of regulatory scrutiny for NFX, yet leaves broader questions about how exchanges should disclose their market incentive programs.
