CFTC drops long‑standing no‑deny settlement rule

The U.S. Commodity Futures Trading Commission has rescinded its long-standing policy that prevented defendants from publicly denying the agency’s allegations as a condition of settling enforcement cases. The change, announced by CFTC Chairman Mike Selig, aligns the derivatives regulator with a similar move made by the Securities and Exchange Commission in May.

The policy, first adopted in 1998, had required settling parties to agree not to contradict the CFTC’s allegations publicly, even if they did not admit guilt. Officials stated the rule was rescinded because it may have created an incorrect impression that the agency was trying to shield itself from criticism and limited its flexibility in settling cases. The CFTC said it will no longer enforce these “no-deny” provisions in existing settlements.

Chairman Selig said the commission had used the rule for nearly three decades and that eliminating it harmonizes its approach with regulators throughout the government. David Miller, director of the CFTC’s division of enforcement, said the action ensures fairer resolutions. The agency clarified it retains the discretion to negotiate admissions of facts or liability in future...