Washington, D.C. – The Commodity Futures Trading Commission (CFTC) has levied a $3.25 million penalty against ED&F Man Capital Markets, Ltd., a London-based swap dealer, for multiple violations of reporting and disclosure regulations. The CFTC simultaneously filed and settled charges against the firm on March 15, 2022.
The charges stem from failures to accurately report swap data to a swaps data repository (SDR) and to disclose conflicts of interest and mid-market marks to U.S. swap counterparties. The alleged misconduct occurred between February 2014 and July 2021.
According to the CFTC, ED&F Man failed to report accurate data for hundreds of thousands of swaps during the specified period. Furthermore, the firm allegedly failed to inform its U.S. counterparties that proprietary traders affiliated with the company had access to their trade information between February 2014 and January 2018. From February 2014 through April 2021, ED&F Man also allegedly did not disclose mid-market marks – a benchmark for swap valuations – to certain counterparties for metals and foreign exchange (FX) swaps.
“The CFTC will not hesitate to bring cases against swap dealers that violate substantive customer protection regulations and fail to have adequate supervisory controls in place,” stated CFTC Acting Director of Enforcement Vincent McGonagle. “Swap dealer registrants must ensure they make complete and accurate disclosures to counterparties and accurately report swap valuation data to SDRs, and they must also diligently perform their supervisory duties.”
The order requires ED&F Man to cease and desist from further violations of the Commodity Exchange Act and CFTC regulations. The firm also faces a civil monetary penalty of $3,250,000. The CFTC acknowledged assistance from the National Futures Association during the investigation. The case was led by Kevin Samuel, Glenn Chernigoff, Erica Bodin, Kathleen Banar, and Rick Glaser of the Division of Enforcement, with support from Pamela Geraghty of the Market Participants Division.
Source: CFTC.gov
Related Federal Cases
- Gerardo Heriberto Nuñez Nuñez, Elder Fraud Scheme, Boston MA, 2026 · Pennsylvania
- James Pavlounis, Social Security Disability Benefits Fraud, New Roc… · Washington
- HHS Office of Inspector General, Health Fraud, Washington D.C., 2024 · Washington
- HHS Office of Inspector General, Healthcare Fraud Crackdown, Washin… · Virginia
- June Gibbs-Brown, Healthcare Fraud Enforcement, Washington DC, 1993 · Washington
