Washington, D.C. – Barclays Bank PLC has agreed to pay $500,000 to settle charges brought by the U.S. Commodity Futures Trading Commission (CFTC) for failing to properly maintain and produce records related to its Exchange for Related Position (EFRP) trades. The CFTC issued an order detailing the violations on September 22, 2016.
The investigation revealed that between September 1, 2009, and October 16, 2012, Barclays executed at least 3,717 metals and energy EFRP trades. However, the bank failed to maintain or produce confirmations for at least 1,358 of those trades, a direct violation of CFTC regulations requiring accurate recordkeeping.
Further compounding the issue, Barclays took nearly 14 months to locate and produce confirmations for the remaining trades when requested by the CFTC’s Division of Enforcement. This delayed response also constituted a violation of CFTC regulations concerning timely production of documents during investigations.
The CFTC order mandates that Barclays cease and desist from future violations of the relevant regulations. While imposing the penalty, the CFTC acknowledged Barclays’ cooperation throughout the investigation. The bank also implemented remedial actions to improve its internal controls and policies regarding the documentation and reporting of EFRP confirmations after October 16, 2012.
The case was led by CFTC Division of Enforcement staff members Rachel Hayes, Stephen Turley, Thomas Simek, Jeffrey Le Riche, and Charles Marvine, with support from the Division of Market Oversight team including Wilburn E. Carlile, Brian Rushton, Vincent Varisano, Harry Hild, Arkadiusz Nowak, Andrew Nager, Ken Danger, and Matthew Hunter.
Barclays Bank PLC is a global banking and financial services company headquartered in the United Kingdom and is provisionally registered as a swap dealer with the CFTC.
Source: CFTC.gov
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