The CFTC Division of Market Oversight announced that ICE Futures U.S. Exchange has an adequate trade practice surveillance program, subject to 3 recommendations and 1 deficiency - based on a rule enforcement review.

The review, which covered a 1-year target period, evaluated the Exchange’s compliance with elements of Designated Contract Market Core Principles 2 (Compliance With Rules) and 12 (Protection of Markets and Market Participants).

The CFTC recommended that the Exchange:

1. conduct and document all trade practice reviews - i.e., proactive reviews for trade practice violations, automated trade surveillance system, and trade practice investigations;
2. retain or have the capability to replicate the parameters used to generate trade practice exception report alerts produced by the system; and,
3. expand trade practice investigations as appropriate to look for patterns of abuse - e.g., by examining trading occurring on other days, and that such expansions be documented.

The CFTC found the Exchange was deficient in completing investigations in 1 year or less, absent mitigating circumstances.