Jamie McDonald Interviewed by Hedge Fund Law ReportMarch 1, 2021
Jamie McDonald spoke to the Hedge Fund Law Report about his experience as director of the Enforcement Division at the Commodity Futures Trading Commission. He discussed the relationship between the CFTC and other regulatory agencies; trends in enforcement; the CFTC's whistleblower program; the impact of the coronavirus on the CFTC's work; and expected changes under the Biden administration.
Jamie also spoke about the areas of enforcement focus likely to be most relevant to fund managers. In addition to traditional areas of focus like “trading activity that could potentially be [viewed as] manipulative or disruptive, as well as any type of fraud or misrepresentations in disclosures,” Jamie discussed areas likely to garner increased enforcement attention, such as trading by “entities that have positions in related markets or . . . across the capital structure,” where one position may benefit from the entity's activity in a related market; “information-related offenses,” such as misappropriation of material non-public information; and “valuation issues,” such as those involved in “spinning out an asset or creating a new fund.”
Part one of the interview is available here; the second part may be viewed here.