HSBC is writing checks to the CFTC totaling $75 million via the resolution of two of the regulator’s orders — one involving alleged swaps transaction violations and a $45 million penalty, and the other based on charges of recordkeeping and supervisory failures that incurred a $30 million penalty. The swaps order encompasses allegations that HSBC… Read More >>
CFTC Approves 24th SEF & Other News
RTX Fintech & Research Launches a SEF Another swap execution facility (SEF) has gotten regulatory approval, raising the number of active SEFs to 24. The Commodity Futures Trading Commission last week issued an order of registration to RTX Fintech & Research LLC (RTX SEF) allowing RTX SEF to launch, according to the CFTC. The New York… Read More >>
Regulators Crack Down on Swaps Data Reporting: Q&A
(Editor’s note: Goldman Sachs recently settled charges of alleged swap-trading violations with the CFTC for $15 million. Our story about the matter can be found here: https://bit.ly/41Xa3Jx. The regulator alleges that the firm did not provide clients with “the transparency that the regulations require.” The CFTC also alleges that Goldman Sachs “failed to disclose dozens… Read More >>
Goldman Sachs Settles Swap Violations Case for $15M
Goldman Sachs & Co. is settling a case of alleged swap-trading violations with the Commodity Futures Trading Commission (CFTC) for $15 million. The regulator alleges that the firm in 2015 and 2016 “failed to provide the clients with the transparency that the regulations require.” In particular, the CFTC “found that Goldman failed to disclose dozens… Read More >>
BNP Paribas & ISDA Test Digital Reporting to CFTC
French banking giant BNP Paribas and the International Swaps and Derivatives Association (ISDA) report that in a bid to transform post-trade operations for over-the-counter (OTC) derivatives they “successfully implemented and tested” a way to facilitate the digital reporting of swaps data that conforms to revised rules to come from the U.S. Commodity Futures Trading Commission… Read More >>
BNP Paribas Settles Swaps ‘Smoothing’ Case for $6M
Smoothing. It sounds like porn, and that’s because it is. Financial porn, that is. Here are the questions of the week: Is a six-million dollar penalty for “incorrectly reporting swaps and adjusted daily mark disclosures” enough of a hit to the nose that it will get an alleged wrongdoer’s attention? Or is six-million smackers simply… Read More >>
Swap Dealer Fined $3M for Alleged Disclosure Failures
A London-based swap dealer, ED&F Man Capital Markets, Ltd. (ED&F Man) has reached a $3.25 million settlement with the Commodity Futures Trading Commission (CFTC) that ends a case involving charges of reporting woes, supervisory failures, and conflicts of interest that underscore the pitfalls securities firms face when trading via multiple jurisdictions. ED&F Man officials signed… Read More >>
UBS Pays $500K to Resolve Audio Deletion Case
The Commodity Futures Trading Commission has issued an order “simultaneously filing and settling” charges against UBS AG for “failing to retain certain audio recordings for the time required under CFTC regulations.” Rather than retaining the recordings of more than 1,000 hours of audio data — including voice recording files that were required by CFTC regulations… Read More >>
CFTC Fines Citi in Second Swaps Reporting Case
The United States Commodity Futures Trading Commission has settled charges against Citibank, N.A. and Citigroup Global Markets Ltd. — two provisionally registered swap dealers, aka Citi — for allegedly “failing to comply with certain swap dealer requirements,” and for related charges of supervision failures. Specifically, the CFTC charged that those two Citi units did not… Read More >>
CFTC Cracks Down on Swaps Data Noncompliance
The CFTC is cracking down on the alleged failures of supervisory systems and other controls that swap dealers and other swap industry participants have set up to be compliant. In particular, the regulator has just announced enforcement actions against Société Générale S.A., Mizuho Capital Markets, and the Refinitiv SEF, among others. “Swap dealer registrants must… Read More >>
