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A swap dealer settled CFTC charges for disclosure, trade reporting and related supervisory violations.
According to the Order, the CFTC found that the swap dealer failed to provide daily marks or disclose pre-trade mid-market marks to a number of its counterparties, or provided inaccurate marks. In addition, the CFTC found that firm reported inaccurate valuation data to a swap data repository.
The CFTC determined that the firm violated Sections 2(a)(13)(G) ("Reporting of Swaps to Registered Swap Data Repositories"), 4r(a)(3) ("Reporting Obligations") and 4s(h)(1) of the CEA and CFTC Rules 23.431(a) and (d) ("Disclosures of Material Information"), 23.602(a) ("Diligent Supervision") and 45.4(d)(2).
To settle the charges, the swap dealer agreed to (i) cease and desist from future violations, (ii) pay a $1.5 million civil monetary penalty and (iii) various undertakings, including remedial actions to provide daily mark disclosures, corrected valuation data to its SDR and a report detailing these efforts to the CFTC. The CFTC recognized the "self-reporting and substantial cooperation" of the firm in the investigation, and that was reflected "in the form of a substantially reduced penalty."
Primary Sources
- CFTC Order: Société Générale S.A.
- CFTC Press Release: CFTC Orders Société Générale S.A. to Pay $1.5 Million for Mid-Market Mark, Swap Valuation Data and Supervision Failures
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