The CFTC and SEC whistleblower programs are nearly identical in how they process whistleblower reward claims. To be eligible for a whistleblower award, an individual (or group of individuals) must first submit a Form TCR – Tip, Complaint, or Referral. The Form TCR may be submitted electronically via the website, or by fax or mail. Whistleblowers who live outside of the U.S. can also hire a CFTC whistleblower lawyer to assist in filing their Dodd-Frank Act or Commodity Exchange Act spoofing case.
A whistleblower eligible for an award can be any individual who sends the Commission a Form TCR containing information about a potential violation of the Commodity Exchange Act. Examples range from a corporate officer or insider, to a trader or market observer, to an investor or fraud victim. A company or another entity is not eligible to be a whistleblower.
Whistleblowers can appeal a Final Order of the Commission regarding their award claim to an appropriate federal court of appeals no later than 30 days after the Final Order is issued.
Unlike the publicly traded securities regulated by the Securities Exchange Commission, swaps are not traded on exchanges. Rather, they are contracts created by financial services companies and are traded behind closed doors, away from public scrutiny. Whistleblowers with inside information are therefore invaluable to the detection of fraud in the exchange of swaps. Oftentimes, violations arise when traders fail to comply with the CFTC’s swaps reporting requirements.