September 21, 2026
Amendments promote efficiency, transparency, and strengthen whistleblower incentives.
On September 11, 2026, the Commodity Futures Trading Commission (CFTC/Commission) announced a final whistleblower award rule establishing a 30% presumption for whistleblower awards of $5 million or less, subject to Commission discretion and its analysis of relevant regulatory factors.
The proposed rule is modeled on theSecurities and Exchange Commission’s (SEC) rule 21F-6(c), further harmonizing the two agencies. The CFTC expects the new rule will improve the efficiency, transparency, and predictability of whistleblower award claims’ processing.
The new rule takes effect on October 11, 2026.
Background
The CFTC’s whistleblower program plays a critical role in protecting the integrity of U.S. commodities, futures, and derivatives markets by incentivizing individuals to report fraud or misconduct. Established under Section 23 of the CEA and implemented through Part 165 of the Commission’s regulations, the program offers financial awards – between 10% – 30% of monetary sanctions collected over $1 million – to individuals who voluntarily provide original information that leads to successful enforcement actions.
Since its inception, the CFTC’s Whistleblower Program has helped its Division of Enforcement secure over $3.3 billion in financial remedies and led to more than $395 million in awards, including approximately $160 million returned to harmed customers. In fiscal year 2024, for instance, whistleblowers contributed information relevant to approximately 42% of the Commission’s open investigations.
However, the program faces challenges, most notably, delays. In the final determination, the Commission states that on average it takes over two and a half years to move from claim submission to final award, potentially discouraging participation.
The Commission believes that by amending Rule 165.9 and implementing the 30% presumption for meritorious awards of $5 million or less will help improve processing times, increase transparency, and provide greater predictability for prospective whistleblowers.
Smaller wards dominated between 2012 and 2025: approximately 80% of all awards were $5 million or less, including 71% that were less than $2 million. The Commission expects that applying a presumptive 30% award in these cases, rather than conducting a granular award-percentage analysis, will reduce administrative burdens and shorten award-processing times.
The Commission also believes that evolving markets and rapid advancements in trading technologies may create greater volume and complexity of potential enforcement matters, which necessitates streamlining the review of smaller‑dollar claims to ensure the effectiveness and efficiency of the Whistleblower Program going forward.
According to the CFTC, the SEC’s experience with its analogous provision, SEC rule 21F‑6(c), demonstrates the efficiency gains the Commission can expect from new rule 165.9(d).
Supporting the CFTC’s Whistleblower Program & Enforcement Mission
Beyond improving efficiency, transparency, and predictability, the Commission expects Rule 165.9(d) to encourage whistleblower reporting in three ways:
- Higher awards: Some eligible whistleblowers may receive larger awards than they would have under the prior framework, strengthening incentives to report misconduct.
- Faster award determinations: More efficient processing may encourage timely reporting by providing greater certainty regarding potential outcomes.
- Regulatory alignment: Harmonization with SEC Rule 21F-6(c) helps ensure that the CFTC program offers incentives comparable to those available under the SEC’s whistleblower program.
The presumption will not apply if:
- The claimant engaged in culpable conduct, interfered with compliance or reporting systems, or otherwise falls within section 165.17.
- The claimant unreasonably delayed reporting.
- A 30% award would be inconsistent with the public interest or the whistleblower’s level of assistance.
The Commission also concluded that the rule is unlikely to encourage meritless claims because the presumption applies only after a claimant has established eligibility for an award. Further, the amendment does not change whistleblower reporting requirements or substantive eligibility standards under Part 165.
Summary of Public Comments
Following publication of the proposed whistleblower awards rule on June 15, 2026, the Commission received nine comments, most of which supported the creation of the 30% presumption.
Commenters included whistleblower advocacy organizations, such as the Anti-Fraud Coalition (TAF Coalition)* and Better Markets, as well as several whistleblower law firms. The TAF Coalition supported the Commission’s decision to model the rule on the SEC framework, noting that alignment between the agencies has historically promoted effective administration of both whistleblower programs.
Conclusion
The Commission believes Rule 165.9(d) will strengthen the effectiveness of its whistleblower program by improving efficiency, transparency, and predictability while reinforcing incentives for individuals to report misconduct. By helping the Commission identify and address misconduct more quickly, the rule supports the agency’s broader mission of protecting market integrity and promoting fair, orderly, and transparent derivatives and futures markets.
Whistleblowers play a critical role in ensuring the integrity of the U.S. and global financial markets. Both the SEC and CFTCrely on whistleblowers to help them identify and prosecute violations of both the federal securities laws and the Commodity Exchange Act. If you have witnessed fraud or misconduct, consider blowing the whistle.
* Christina McGlosson, special counsel at Cohen Milstein and a former CFTC Whistleblower Office director, helped author TAF Coalition’s public comment.
About the Author
Christina McGlosson, special counsel in Cohen Milstein’s Whistleblower practice, focuses exclusively on Dodd-Frank Whistleblower representation She is the former acting director of the Whistleblower Office in the Division of Enforcement at the U.S. Commodity Futures Trading Commission. She was a senior attorney in the SEC’s Division of Enforcement, where she assisted in drafting the SEC rules to implement the whistleblower provisions of Dodd-Frank and served as Senior Counsel to the Director of the SEC’s Division of Enforcement and to its Chief Economist.
Christina represents whistleblowers in the presentation and prosecution of fraud claims before the SEC, CFTC, FinCEN, as part of the U.S. Treasury, the Department of Justice, and other government agencies.