The Commodity Futures Trading Commission's enforcement division will end the practice of "regulation by enforcement," according to Acting Chair Caroline Pham.

The derivatives market regulator is reorganizing its enforcement division in a move it said will end the practice of regulation by enforcement.

The U.S. Commodity Futures Trading Commission will reorganize its Division of Enforcement's task forces to end "regulation by enforcement" and instead focus on combating fraud and helping victims, CFTC's acting chairman said on Tuesday.

The Commodity Futures Trading Commission (CFTC) is set to announce a restructuring of its enforcement division to halt the practice known

According to the CFTC’s announcement, the new structure will “more efficiently utilize the CFTC’s resources to prevent fraud, manipulation and abuse and ensure market integrity” as well as “provide enhanced governance and oversight of enforcement matters to prevent overreach and enhance consistency, fairness and due process.”