FIA Houston round-up: CFTC Hot Topics and Trading on WhatsApp

Fonetic Team
Monday, 17 June 2019 / Published in Compliance, Energy Trading, event

FIA Houston round-up: CFTC Hot Topics and Trading on WhatsApp

This week Fonetic was in Houston for the FIA Commodities Symposium, the first and certainly not the last conference held by the FIA specifically for the Commodities markets community.

The two-day event took place in Houston and was attended by law firms and compliance professionals from the Commodities and Energy industry.


Day 1 kicked off with a panel on Hot Topics in CFTC and FERC Enforcement. The panelists included Vincent McGonagle, Principal Deputy Director, Division of Enforcement, CFTC. Detailed discussion followed of recent enforcement cases such as Statoil ASA being fined over swaps manipulation. We also heard from the NFA, Jones Day and Shell Trading & Supply on best practices for a compliance program and after coffee we heard a very detailed discussion on the rules for hedging, a session moderated by William McCoy, Managing Director and Counsel at Morgan Stanley.


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Day 2 followed with more interesting discussion and a keynote by Dan Berkovitz, Commissioner of the CTFC. Berkovitz centered around two key topics, the integrity and competitiveness of the derivative markets, and the implementation of position limits.


During the Ops and Docs panel discussion there was a discussion about communications monitoring. Rapidly changing technology has made it increasingly difficult to monitor all communication channels.

“Traders are using WhatsApp and WeChat to avoid monitoring”


Recent trends reflect that traders are finding new ways to avoid detection. For example, traders are starting to use WhatsApp and WeChat to avoid compliance monitoring their conversations. We've already seen banks suspend employees for using WhatsApp at work, so does this mean we will see the same in the energy and commodities community?  


Some firms opt to ban mobiles on the trading floor. With technology solutions on the market that can effectively monitor mobile messaging apps, such as VoxSmart, this risk can now be covered and actively reviewed.


Are you looking for more info on how Fonetic can help Commodity and Energy firms achieve surveillance and compliance sucess? Read our case study on implementing voice surveillance in a leading Energy trading company. 


Trade Comms Suite is the only proven communications surveillance that combines voice, eComms and trade data to provide true trade reconstruction. We partner with firms like VoxSmart to integrate this data source into one single platform to provide accurate and complete transparency of your trading floor activity and compliance with Dodd-frank Title VII, MiFID II, MAR and other key regulations.


Energy Voice Surveillance Fonetic Case Study