In Regulatory Wrap for the week to September 12, Kathryn Fallah reviews recent enforcement action from the CFTC against 10 firms for technical compliance failures.
In this week’s Regulatory Wrap, we unpack the Commodity Future Trading Commission’s (CFTC) “enforcement sprint,” in which the regulator has filed and settled compliance violations against 10 firms for a combined $8,325,000.
1. This “enforcement sprint” initiative was set out by Acting Chairman Pham and allows firms to settle off-channel communications violations quickly by presenting remediation plans and settlement offers
2. This initiative specifically applies to compliance violations that don’t involve any market abuse, such as recordkeeping or supervision deficiencies
3. The enforcement sprint included a $5 million fine for trade surveillance supervision failures, a $1.5 million fine for inaccurate trade reports, a $325,000 fine for incorrect swap valuation data, and three $500,000 fines for recordkeeping violations
4. All the firms involved completed or nearly completed remediation plans, and nearly all the firms received a reduction in fines for exemplary cooperation
5. Pham stated that the goal of this initiative was to “provide firms an opportunity to work with [the Commission] to fairly and efficiently resolve compliance-related investigations”
This week’s Regulatory Wrap is brought to you by Global Relay’s Content Writer, Kathryn Fallah.
The CFTC may be switching gears on its approach to handling compliance violations, though one thing remains consistent – firms that have monitoring solutions to identify and self-report risk will stay ahead.
