The Estate of Stephen M. Jennions v. CFTC
CourtCourt of Appeals for the D.C. Circuit
Date FiledJuly 28, 2026
Docket25-1106
StatusPublished
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Full Opinion
United States Court of Appeals
FOR THE DISTRICT OF COLUMBIA CIRCUIT
Argued April 6, 2026 Decided July 28, 2026
No. 25-1106
THE ESTATE OF STEPHEN M. JENNIONS,
PETITIONER
v.
COMMODITY FUTURES TRADING COMMISSION,
RESPONDENT
On Petition for Review of Orders
of the Commodity Futures Trading Commission
Stephen S. Hasegawa argued the cause and filed the briefs
for Petitioner. With him on the briefs were Erika A. Kelton and
Samuel E. Brown.
Raagnee Beri, Senior Assistant General Counsel,
Commodity Futures Trading Commission, argued the cause for
Respondent. With her on the brief were Tyler Badgley,
General Counsel and Anne W. Stukes, Acting Deputy General
Counsel.
Before: PILLARD, WILKINS, and KATSAS, Circuit Judges.
Opinion for the Court filed by Circuit Judge WILKINS.
2
WILKINS, Circuit Judge: Stephen M. Jennions
(“Jennions”) petitions for review of the Commodity Futures
Trading Commission’s (“CFTC” or “Commission”) final
orders denying his application for a whistleblower award. His
award application corresponded to a set of administrative
actions (“Covered Actions”) taken by the Commission in
November 2014 against five banks for manipulating
benchmark rates in the foreign exchange market. Jennions
contends that the denial was arbitrary, capricious, an abuse of
discretion, or otherwise not in accordance with law because the
information he provided the Commission set the agency’s
investigation in motion and led to a successful enforcement
action against the five banks. See 17 C.F.R. § 165.2(i)(1). He
further alleges that other departments within the CFTC exerted
undue influence that contributed to the denial of his
application.
We disagree. The CFTC properly denied Jennions’s
application after reasonably determining that he did not
provide the Commission with original information that was
sufficiently specific and credible to cause the Commission staff
to commence their investigation into the five banks. The
Commission also reasonably rejected Jennions’s claim that
there was undue control or influence within the Commission
that contributed to the denial of his application as there is no
record evidence to support his contention. And even assuming
some inter-Commission participation occurred in violation of
the Commission’s regulations, Jennions still failed to identify
any resulting prejudice from that alleged violation that affected
the outcome of his application. See 5 U.S.C. § 706(2). We
therefore deny the petition for review.
3
I.
A.
The Dodd-Frank Wall Street Reform and Consumer
Protection Act (“Dodd-Frank Act”) amended the Commodity
Exchange Act to authorize monetary awards for
whistleblowers who provide the Commodity Futures Trading
Commission with information about violations of the
Commodity Exchange Act. Pub. L. No. 111-203, § 748, 124
Stat. 1739–47 (2010) (codified at 7 U.S.C. § 26); see also 17
C.F.R. § 165.1. To be eligible to receive a monetary award, a
whistleblower must “voluntarily provide[] original information
to the Commission that le[ads] to the successful enforcement
of [a] covered judicial or administrative action.” 7 U.S.C. §
26(b)(1). The Dodd-Frank Act defines “original information”
as information that “is derived from the independent
knowledge or analysis of a whistleblower”; “is not known to
the Commission from any other source, unless the
whistleblower is the original source of the information”; and
“is not exclusively derived . . . from the news media, unless the
whistleblower is a source of the information.” 7 U.S.C. §
26(a)(4); see also 17 C.F.R. § 165.2(k)(1)–(3).
The regulations implementing the whistleblower award
program set forth three circumstances detailing when
information could have “led to” to a successful enforcement
action. Whistleblower Incentives and Protection, 76 Fed. Reg.
53172, 53201 (August 25, 2011). Each circumstance requires
the whistleblower to have submitted the information directly to
the CFTC. 17 C.F.R. § 165.2(i)(1)–(3). And particularly
relevant here, the information provided must be “sufficiently
specific, credible, and timely to cause the Commission staff to
commence an examination, [or] open an investigation” into the
alleged violation that prompts the agency to “br[ing] a
4
successful judicial or administrative action based in whole or
in part on conduct that was the subject of the whistleblower’s
original information[.]” Id. § 165.2(i)(1).
B.
This case focuses on CFTC Orders against five banks
regarding the manipulation of the World Markets/Reuters
(“WM/R”) Closing Spot Rates (“WM/R Rates”).
SJ_ROA0000250. The WM/R Rates are widely used foreign-
exchange benchmark rates that establish relative currency
values and are used to price cross-currency swaps, foreign-
exchange swaps, spot transactions, forwards, options, futures,
and other derivative instruments. Id. Accordingly, “the
integrity of the WM/R Rates and other FX benchmarks is
critical to the integrity of the markets in the United States and
around the world.” Id. The most widely used WM/R rate is
set at 4 p.m. London time (the “4 p.m. WM/R fix”).
Respondent’s Br. 5; SJ_ROA0000140. The 4 p.m. WM/R fix
is calculated using bids and offers extracted from an electronic
trading system during a 60-second window (“fix period”), from
which WM/R determines a median-based mid-trade rate. Id.
Large transactions executed before and during the fix period
can influence the resulting rate. Id.
On January 7, 2013, Jennions voluntarily provided the
United Kingdom’s Financial Conduct Authority (“UK FCA”
or “UK Authority”) information concerning alleged
manipulation of foreign-exchange benchmark rates. In his
initial communication, Jennions described practices he
observed while working at Deutsche Bank and Morgan Stanley
in which traders executed transactions before the fix period to
obtain preferential pricing for banks at the expense of
customers requesting execution at the 4 p.m. WM/R fix. [Id.]
5
Jennions continued assisting the UK FCA over several months
and provided additional information to the UK Authority.
On June 12, 2013, the news outlet Bloomberg reported that
traders at several large banks manipulated foreign exchange
benchmarks used to value trillions of dollars in investments.
SJ_ROA0000234–240; Liam Vaughan, Gavin Finch &
Ambereen Choudhury, Traders Said to Rig Currency Rates to
Profit Off Clients, BLOOMBERG (June 12, 2013, at 14:06 EDT),
https://perma.cc/CR86-TEEP. The article described traders
attempting to influence the 4 p.m. WM/R fix by front-running
client orders and executing trades during the close of the
trading session. SJ_ROA0000234; Respondent’s Br. 9–10.
Citing anonymous traders with knowledge of these trades, the
article also reported that traders shared order information
through instant messaging to coordinate strategies and exert
pressure on benchmark rates. SJ_ROA0000234, 238. The
article further reported that the UK FCA was already “working
with regulators worldwide to review the integrity of
benchmarks” following earlier related enforcement actions.
SJ_ROA0000235. The Bloomberg Article quoted a UK FCA
spokesperson saying, “[t]he FCA is aware of these allegations
and has been speaking to the relevant parties.” Id. The article
did not attribute its reporting on the underlying scheme to the
UK FCA beyond this statement. Id. Jennions was not
mentioned in the article, he was not one of the anonymous
traders cited, and he did not communicate with the reporter
before the article was published.
According to the CFTC, the Bloomberg article prompted
the Commission’s Division of Enforcement to open an
investigation a few days later, on or about June 19, 2013. Two
CFTC staff members contacted the UK FCA one day before
the investigation commenced to discuss the UK FCA’s
statement in the Bloomberg article. The UK FCA explained
6
that it had not opened a formal investigation, was only
reviewing certain transactions that might have influenced
WM/R rates, and had not identified indicia of wrongdoing. At
that time, the UK FCA did not identify any whistleblowers. Id.
The CFTC therefore concluded it could proceed independently
by requesting information directly from banks.
Almost a month later, after issuing information requests to
select financial institutions, the CFTC sent the UK FCA a letter
requesting information concerning complaints relating to the
WM/R benchmark and asking the UK FCA to facilitate contact
with any whistleblower willing to speak with the Commission.
SJ_ROA0000301. The UK FCA reached out to Jennions, but
neither disclosed his identity to the CFTC nor shared any
information he provided to them per their policy that prohibits
disclosure. Id.; see also SJ_ROA0000353. Although Jennions
told the UK FCA that he was willing to meet with the CFTC,
the Commission—before learning his identity or receiving any
information he shared with the UK FCA—ultimately
abandoned efforts to contact him. SJ_ROA0000302. The
CFTC received no information from Jennions through the UK
FCA prior to the successful enforcement action against the
relevant financial institutions. SJ_ROA0000302.
C.
In November 2014, the CFTC issued five Orders
(“Covered Actions”) filing and settling charges against five
banks—Citibank N.A., JPMorgan Chase Bank N.A., UBS AG,
The Royal Bank of Scotland plc, and HSBC Bank plc.—for
attempted manipulation of global foreign exchange benchmark
rates, particularly the WM/R Rates. SJ_ROA0000099.
Monetary penalties totaled $1.4 billion. Id. On February 2,
2015, the Commission posted the first four of five notices of
the Covered Actions inviting whistleblower award applications
7
in connection with the successful enforcement action against
each bank. Respondent’s Br. 17–18; see, e.g., U.S.
COMMODITY FUTURES TRADING COMMISSION, “Notice of
Covered Action No. 2015-010 - JPMorgan Chase Bank, N.A.
Award Claims Due No Later than May 4, 2015” (February 2,
2015), https://www.whistleblower.gov/notices/2015-010. The
final notice was posted on February 13, 2015.
On April 30, 2015, Jennions submitted a whistleblower
award application asserting that he was a “critical source of
information” whose February 11, 2015 Form Tip, Complaint,
or Referral (“TCR”)1 submission and communications with the
UK FCA initiated a cross-border investigation that led to the
Covered Actions. SJ_ROA0000001; SJ_ROA0000057;
SJ_ROA0000064–67. In his application, Jennions did not
claim to have direct contact with the CFTC before his February
2015 TCR, nor did he claim to be a source for the Bloomberg
Article. The Commission’s Whistleblower Office notified
Jennions that it intended to recommend denial of his claim
“because the information he provided to the Commission did
not lead to the successful enforcement actions referenced in his
Award Applications” and noted that Jennions did not “g[i]ve
the Commission” the information that led to the successful
resolution of the enforcement action. SJ_ROA0000313–14
(emphasis in the original). Jennions responded with a letter
from the UK FCA confirming that their office “received
intelligence” from him and conducted inquiries based, in part,
on his information. SJ_ROA0000329. However, the UK FCA
declined to state that the inquiries prompted the CFTC to
1 Jennions first contacted the CFTC on February 11, 2015, three
months after the Commission issued its November 2014 orders, by
submitting a TCR with information that he provided to the UK FCA.
SJ_ROA0000001.
8
investigate the relevant financial institutions.
SJ_ROA0000330–31.
On February 9, 2022, the Commission’s Whistleblower
Claims Review Staff (“CRS”) issued preliminary
determinations for all award applications related to the
Covered Actions and recommended denying them all because
no claimant’s original information led to the successful
enforcement of the Covered Actions for purposes of Rule
165.2(i). See, e.g., SJ_ROA0000346–57. In addressing
Jennions’s award application specifically, the CRS determined
that he was ineligible for an award based on either his February
TCR submission or as a derivative source for information the
Commission obtained from the UK FCA or the Bloomberg
Article. SJ_ROA0000353–57. In particular, the CRS
determined that the information provided by Jennions was not
sufficiently specific or credible and that they were “unable to
act” on the information he provided without additional
information or context from the UK FCA or him.
SJ_ROA0000355–56. Jennions requested the materials the
Commission relied on to make their determination and
ultimately requested reconsideration, essentially recycling his
prior arguments. He further raised for the first time that the
Commission’s Office of the General Counsel improperly
influenced the CRS.
On March 12, 2025, the Commission issued its Final
Determinations denying Jennions’s application. The CFTC
concluded that the Bloomberg Article—not his submissions—
prompted the Commission’s investigation, reiterated that his
information was not sufficiently specific, credible, or timely to
have caused the investigation, and determined that his undue-
influence arguments were unsupported. SJ_ROA0000473–85.
Jennions timely filed a petition for review of the Commission’s
denial of his whistleblower application.
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II.
We have jurisdiction to review the denial of Jennions’s
application under 7 U.S.C. § 26(f)(2).
Whistleblower determinations “shall be in the discretion
of the Commission.” 7 U.S.C. § 26(f)(1). We “review the
determination made by the Commission in accordance with
section 706[] of” the Administrative Procedure Act, id. §
26(f)(3).2 Thus, we will “hold unlawful and set aside agency
action, findings, and conclusions” that are “arbitrary,
capricious, an abuse of discretion, or otherwise not in
accordance with law.” 5 U.S.C. § 706(2)(A). Agency action
is deemed arbitrary and capricious when it “entirely failed to
consider an important aspect of the problem, offered an
explanation for its decision that runs counter to the evidence
before the agency, or is so implausible that it could not be
ascribed to a difference in view or the product of agency
expertise.” Motor Vehicle Mfrs. Ass’n of the United States, Inc.
v. State Farm Mut. Auto. Ins. Co., 463 U.S. 29, 43 (1983).
When reviewing agency factfinding, as we do here, “there is
no material difference between the APA’s ‘arbitrary and
capricious’ standard and its ‘substantial evidence’
standard.” Crooks v. Mabus, 845 F.3d 412, 423 (D.C. Cir.
2016).
A.
Jennions contends that the Commission’s decision to deny
his whistleblower award application under 17 C.F.R. §
2 The code provision specifies “Section 7064 of Title 5,” but the
United States Code Annotated notes that the proper section
“[p]robably should be section 706.” 7 U.S.C. § 26(f)(3), n.2 (internal
quotations removed).
10
165.2(i)(1) was arbitrary, capricious, and contrary to the
evidence before the agency. As explained above, an applicant
qualifies for an award under this provision only if he provides
“original information that was sufficiently specific, credible,
and timely to cause the Commission staff to commence an
examination, [or] open an investigation” and the Commission
brings a successful action based in whole or in part on the
original information supplied by the applicant.3 17 C.F.R. §
165.2(i)(1). Jennions maintains that he has satisfied that
requirement because he provided original information to the
UK FCA, and that information, as referenced in the Bloomberg
article, prompted the Commission’s investigation. Petitioner’s
Br. 18–20. Although he does not dispute that the Bloomberg
article triggered the investigation, he argues that the UK FCA’s
statement within the article necessarily contributed to the
Commission’s decision to begin the investigation and cannot
be “disentangled from the rest” of the article’s content.
Petitioner’s Br. 24; see also SJ_ROA0000224 (Div. of Enf.
Decl. ¶ 3). He relies on the UK FCA spokesperson’s comment
that “[t]he [UK] FCA is aware of these allegations and has been
speaking to the relevant parties,” SJ_ROA0000235, and he
asserts that he is the reason the UK FCA was “aware” of
potential WM/R rate manipulation and the impetus for the UK
FCA’s outreach to the “relevant parties” referenced.
Petitioner’s Br. 19–21. To bolster his claims, Jennions
attempts to treat the article’s independent, detailed allegations
of WM/R rate manipulation as “corroborative” of the UK
FCA’s brief statement, asserting that all of the statements in the
article “describe[] the same conduct” he reported to the UK
FCA. Id. at 20–22. He further contends that the UK FCA’s
3 There are two other pathways for satisfying the “led to the
successful enforcement” requirement. 17 C.F.R. §§ 165.2(i)(2), (3).
Here, Jennions does not rely upon either of these alternative paths,
so we will not reach the other grounds. Petitioner’s Br. 17 n.5.
11
statement, however limited, must have been credible, as “two
Commission staff members . . . call[ed] the FCA” before the
CFTC opened its investigation to gather information. Id. at 24.
We disagree. We hold that the Commission’s conclusions
and denial of Jennions’s application are supported by
substantial evidence. The record demonstrates that the
Commission opened its investigation based on the article’s
“specific explanation of how the traders were manipulating
rates,” not the “single-sentence quote that ‘the FCA is aware of
these allegations and has been speaking to the relevant parties’”
or any information it otherwise obtained from the UK FCA or
Jennions. SJ_ROA0000479–81(CFTC Final Order 7–9);
SJ_ROA0000260–66 (Division of Enforcement Declaration).
As described above, the article provides detailed descriptions
of the alleged misconduct, including how traders conducted the
manipulations and shared their strategies across banks.
Jennions has not met his burden of showing that the
Commission’s conclusions that the specific entries in the
Bloomberg article caused the CFTC to open an investigation
are implausible or are counter to the evidence before us. As
the Commission explained in its Final Order and highlighted
on appeal, “the whistleblower program is designed to
incentivize persons with knowledge of misconduct to come
forward and share their information with the Commission[.]”4
Respondent’s Br. 37 (citing 76 Fed. Reg. 53172, 53181; 17
C.F.R. § 165.5(a)); see also J.A. 481 (CFTC’s Final Order at 9
4 Jennions’s contention that he provided the Commission with
original information “through the UK FCA” is the sort of argument
a petitioner may also bring under 17 C.F.R. § 165.2(l)(2), which
permits a whistleblower to qualify for an award when original
information is initially provided to a “foreign futures authority.”
Since Jennions does not proceed under this provision or claim to
have made this type of submission, we do not need to reach this
ground.
12
(“The whistleblower program is premised upon encouraging
people to come forward with information[.]”)). There is an
“expectation that the information . . . [is] high quality,
reliab[le], and specific[]” such that there is a “meaningful
nexus to the Commission’s ability to successfully complete its
investigation.” 76 Fed. Reg. at 53177.
Even setting aside that Jennions did not provide the
information directly to the CFTC, the lone, vague, non-
substantive reference in the Bloomberg article to the UK
FCA’s awareness of “allegations” offers no insight into the
nature of misconduct at issue and thus cannot reasonably be
deemed “specific,” especially in light of the other far more
detailed references in the article. See id. Nor is there any basis
for the proposition that detailed information supplied by
independent contributors (i.e., the traders and other non-
anonymous sources in the article) is necessarily attributable to
other contributors (like the UK FCA) merely because the
information appears within the same publication addressing a
similar subject. So even if we were to assume, without
deciding, that the UK FCA’s statement as quoted in the article
communicated any “original information” Jennions provided,
his claim would still fail as this quotation was not the type of
specific and credible information that the CFTC whistleblower
award program was created to reward. See id. Though “[w]e
of course recognize that a whistleblower does not always know
the full picture of a scheme,” they still “must provide some
actionable detail.” Kitchen v. Commodity Futures Trading
Comm’n, 177 F.4th 1226, 1232–33 (D.C. Cir. 2026).
Actionable details were not provided by Jennions through the
UK FCA’s statement in the article.
13
B.
The Commission also rejected Jennions’s claim that the
CFTC’s Office of the General Counsel (“OGC”) improperly
influenced the Claims Review Staff in violation of the
Commission’s rules. Jennions contends that OGC “improperly
influenced” the CRS by “supplant[ing] the Whistleblower
Office during the claims review process” and participating in
the Commission’s final agency determination in a manner that
was arbitrary, capricious or otherwise contrary to the
Commission’s rules. Petitioner’s Br. 27–38. He bases this
assertion on his efforts to obtain additional materials after
receiving the CRS’s Preliminary Determination denying his
award application.
Under 17 C.F.R. § 165.7(g)(2)(i), a claimant may request
to review the materials that formed the basis of the CRS’s
Preliminary Determination, and regulations specify the
universe of materials available. See 17 C.F.R. § 165.10. After
receiving the Preliminary Determination, Jennions requested
those materials. Unsatisfied with the initial production, he
sought additional information, including the identities of the
CRS members and the staff who drafted the Preliminary
Determination, to verify that the CRS was “properly
constituted” and that OGC had not exerted “undue influence.”
SJ_ROA0000432. He identified no document or
communication suggesting a violation of the rules.
The Commission responded that Jennions was not entitled
to the requested materials, including the composition of the
CRS, because “Rule 165.10(b) states that ‘[t]he rules in this
part do not entitle a claimant to obtain from the Commission
any materials (including pre-decisional or internal deliberative
process materials that are prepared to assist the Commission or
the Claims Review Staff in deciding the claim) other than those
14
listed in paragraph (a) of this section.’” SJ_ROA0000434
(quoting 17 C.F.R. § 165.10(b)). Composition of the CRS is
not expressly listed in Rule 165.10 as subject to disclosure.
Jennions nonetheless asserted, without any factual support, that
“we must assume that OGC unduly influenced, and perhaps
even drafted, the Preliminary Determination, contrary to
Commission regulations.” SJ_ROA0000424. The
Commission rejected Jennions’s arguments in its Final
Determination, explaining that the relevant rules state that “the
OGC must make a legal sufficiency review, not that the OGC
must not do anything else” that the Commission, within its
authority, deems appropriate. SJ_ROA0000485 (emphasis in
original). The Commission further noted that “while Rule
165.15(a)(2) excludes the Office of General Counsel from the
Claims Review Staff, it does not follow that were the Office of
General Counsel to take any other role it would be undue
influence.” Id. The Commission ultimately found that
Jennions contentions were not support by the record. Id.
We agree with the Commission’s conclusion. As an initial
matter, Jennions identifies no evidence that the OGC
participated in the CRS’s determinations. His argument rests
instead on speculation that misconduct may have occurred
during the process, largely because the CFTC did not disclose
internal materials and declined to confirm whether OGC
participated in his proceedings. Respondent’s Br. 26–27; see
also Petitioner’s Reply Br. 16. Speculation is insufficient to
overcome the “highly deferential” arbitrary and capricious
standard, which “presumes agency action to be valid.” Lead
Indus. Ass’n, Inc. v. Env’t Prot. Agency, 647 F.2d 1130, 1145
(D.C. Cir. 1980) (citation modified).
Jennions likewise does not explain which stages of the
award process were supposedly affected or how any
involvement by OGC altered the outcome of his application.
15
So even assuming the OGC participated in the Claims Review
Staff’s decision and that its participation violated the
Commission’s regulations, Jennions still fails to identify any
prejudice from that alleged violation. See Air Canada v.
Department of Transp., 148 F.3d 1142, 1156 (D.C. Cir. 1998);
see also 5 U.S.C. § 706. But “[a] party claiming harm from an
agency’s failure to follow its own rules must demonstrate some
form of prejudice.” Schaefer v. McHugh, 608 F.3d 851, 854
(D.C. Cir. 2010). As we have explained, “[i]f the agency’s
mistake did not affect the outcome, if it did not prejudice the
petitioner, it would be senseless to vacate and remand for
reconsideration.” Jicarilla Apache Nation v. U.S. Dep’t of
Interior, 613 F.3d 1112, 1121 (D.C. Cir. 2010) (quoting PDK
Labs., Inc. v. U.S. Drug Enforcement Administration , 362 F.3d
786, 799 (D.C. Cir. 2004)) (citation modified). Without
credible evidence of specific prejudice affecting the outcome
of Jennions’s whistleblower application, we will not set aside
the CFTC’s denial. See DSE, Inc. v. United States, 169 F.3d
21, 31 (D.C. Cir. 1999).
***
We therefore deny the petition for review consistent with
the conclusions made by the Commission.
So ordered.