The Commodity Futures Trading Commission (CFTC) has introduced new guidelines on self-reporting, cooperation, and remediation, setting clear expectations for how firms should handle trade and transaction reporting.

For firms operating in the derivatives market, this is a wake-up call. The CFTC’s Mitigation Credit Matrix now directly links penalty reductions to a firm’s ability to self-report, cooperate, and demonstrate strong data quality controls.

But here’s the challenge: many firms still struggle with inaccurate, incomplete, and fragmented reporting data, putting them at risk of regulatory action.

At Reg-X Innovations, we help firms take control of their reporting with CFTC Accuracy and CFTC Completeness. With Reg-X Assurance, firms can continuously improve their data quality and maintain effective oversight and control over their trade and transaction reporting.

What’s Changing? The CFTC’s New Approach to Self-Reporting & Cooperation

The CFTC has introduced a structured framework for evaluating how firms handle reporting errors:

✔ Self-Reporting: Firms will be assessed on a three-tier scale, No Self-Report, Satisfactory Self-Report, and Exemplary Self-Report. To get full credit, reports must be voluntary, timely, and complete.

✔ Cooperation & Remediation: Firms must actively prevent future violations and demonstrate meaningful compliance efforts. Cooperation is assessed on four levels, No Cooperation, Satisfactory Cooperation, Excellent Cooperation, and Exemplary Cooperation.

✔ Mitigation Credit Matrix: The CFTC will reduce penalties by up to 55% for firms that self-report and cooperate effectively. But, without proactive compliance, firms could face the full weight of regulatory enforcement.

This shift means firms must stop viewing compliance as a reactive process and start ensuring their trade and transaction data is accurate and complete at all times.

The Problem: Why Many Firms Struggle with Trade Reporting Compliance

The reality is that many firms are still relying on outdated, fragmented, and manual processes, which lead to:

⚠ Data inaccuracies – Errors in reporting can result in regulatory scrutiny.
⚠ Incomplete reports – Missing key data points could mean compliance failures.
⚠ Slow issue detection – Without real-time oversight, errors are only spotted when it’s too late.
⚠ Limited control – Many firms lack a centralised view of their reporting quality.

These challenges don’t just make compliance harder, they increase the risk of enforcement actions, reputational damage, and financial penalties.

The Solution: How Reg-X Ensures CFTC Compliance

At Reg-X Innovations, we’ve built CFTC Accuracy and CFTC Completeness to help firms meet these new regulatory expectations with confidence.

✅ Accurate & Complete Reporting – Ensure your trade data is fully aligned with CFTC requirements.
✅ Proactive Data Quality Checks – Detect and fix errors before they become compliance risks.
✅ Full Oversight & Control – Gain real-time visibility into reporting accuracy.
✅ Fast & Reliable Regulatory Responses – Be ready to self-report and cooperate with high-quality data.

With Reg-X Assurance, firms don’t just fix issues, they continuously improve their data quality, ensuring they’re always prepared for regulatory scrutiny.

Why Acting Now is Critical

The CFTC is actively encouraging firms to self-report, but only those with robust reporting processes will benefit. Firms that can’t provide timely, accurate, and complete data could face:

❌ Higher penalties with no mitigation credit
❌ Regulatory investigations and audits
❌ Reputational damage for non-compliance

The solution? A proactive approach to data accuracy and completeness, ensuring your reporting is always regulator-ready.

Next Steps: Tailoring Reg-X Solutions to Your Needs

By assessing your firm’s regulatory reporting framework, we can identify gaps and enhance compliance efficiency. 

1)  RegAssure Completeness – Ensures automated trade validation and reporting accuracy to minimize compliance risks.

2)  RegAssure EnO Analytics – Detects and resolves reconciliation errors before regulatory submission.

Implementing these solutions streamlines reporting workflows, reduces operational costs, and strengthens regulatory compliance.

Don’t wait for an enforcement action to expose gaps in your reporting. Contact Reg-X Innovations today to find out how we can help you stay ahead of CFTC compliance.