CFTC probed CDS market under last enforcement head

Goelman compares manufactured payouts to match-fixing, and says CFTC has jurisdiction to bring case

cftc-hq
The CFTC says manufactured defaults may constitute manipulation

The former head of the US Commodity Futures Trading Commission’s division of enforcement has backed the agency’s efforts to clamp down on ‘manufactured’ credit default swap payouts, in which a market participant strikes an agreement with the reference entity, helping both firms but potentially hurting other CDS users.

Aitan Goelman, who stepped down as the CFTC’s top prosecutor in January 2017, says the agency investigated the market under his watch, but did not take further action.

“When I

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