A swap dealer ("SD") settled CFTC charges for omitting certain information on its daily large trader reports ("LTRs") and Forms 102S, and submitted inaccurate commodity reference price and volume values.
In the Order, the CFTC found that the SD did not include certain new swaps on its Part 20 submissions for a period after it switched from one swap data repository to another. In addition, the CFTC found that as a result of an error in its reporting code, the SD submitted LTRs that contained inaccurate commodity reference price and volume values. Further, the CFTC found that the SD conducted limited reviews of its submissions and did not have in place "robust internal processes" to determine the accuracy or completeness of Part 20 reports.
The CFTC determined that the SD violated Section 4s(f) ("Reporting and recordkeeping") and 4s(h)(1)(B) ("Business conduct standards") of the CEA and CFTC Rules 20.4 ("Reporting entities"), 20.5 ("Series S filings"), 20.7 ("Form and manner of reporting and submitting information or filings") and 23.602 ("Diligent supervision").
To settle the charges, the SD agreed to (i) cease and desist from future violations, (ii) pay a $750,000 civil monetary penalty and (iii) compliance undertakings.
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