Washington, D.C. – BGC Derivative Markets, L.P. (BGCD) has been penalized $1.9 million by the Commodity Futures Trading Commission (CFTC) for widespread failures to accurately report swap transactions, the agency announced Friday. The CFTC simultaneously filed and settled charges against the swap execution facility (SEF) stemming from reporting deficiencies spanning over five years.
According to the CFTC order, from January 2017 to March 2022, BGCD failed to report or accurately report nearly 12,500 swap transactions to the CFTC and the public. An additional 3,500 transactions lacked real-time data reported to a swap data repository (SDR), with corrections also submitted late. In total, the company’s reporting errors encompassed over 16,000 transactions across various products including interest rates, foreign exchange, credit, and equities.
The investigation revealed 14 separate reporting system issues contributed to the failures. Notably, over half of these issues remained undetected by BGCD for eight months or longer, with two persisting for over four years. The CFTC found BGCD lacked adequate processes for identifying and correcting reporting errors, and was aware of the need for a reconciliation process but failed to implement one.
“Today’s enforcement action highlights the importance of accurate and timely swaps reporting and makes clear that persistent and recurring reporting failures violate SEF Core Principles,” stated CFTC Acting Director of Enforcement Gretchen Lowe. “Accurate and timely swaps reporting is necessary for the CFTC to safeguard the integrity of our markets and to ensure market transparency.”
As part of the settlement, BGCD is required to cease and desist from further violations. The company must also conduct a comprehensive review of its swaps reporting program and implement a reconciliation process. Within one year, BGCD’s Chief Compliance Officer and Chief Executive Officer must certify to the CFTC that the reconciliation process and compliance program are designed to prevent future violations of the Commodity Exchange Act and related regulations.
The case was led by CFTC staff members Rebecca Jelinek, Lauren Fulks, Tom Simek, Chris Reed, and Charles Marvine, with assistance from the Division of Market Oversight and the Division of Data.
Source: CFTC.gov
Related Federal Cases
- FDIC Approved $3B Budget Amid Bank Failures, Washington DC, 2024 · Washington
- FDIC Exposed for Bank Compliance Failures, Washington DC, 2022 · Washington
- FDIC, Bank Compliance Failures Under CRA, Washington DC, 2022 · Washington
- Vivek Ramaswamy, Politician Snubs VP Slot, Washington DC, 2024 · Washington
- Joe Biden Condemns Corporate Price Fixing, Washington D.C., 2024 · Washington
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News