New York, NY – The Commodity Futures Trading Commission (CFTC) has secured a consent order against TFS-ICAP LLC and TFS-ICAP Ltd., interdealer brokers based in New York and London, resulting in a $7 million civil monetary penalty. The firms admitted to engaging in deceptive practices, specifically “flying” prices and “printing” trades, between January 2014 and August 2015.
The CFTC alleges that TFS-ICAP brokers falsely represented to U.S.-based bank clients that bids and offers existed for FX options when no such trading interest was present. They also falsely reported trades as executed when they had not occurred. These actions violate the Commodity Exchange Act (CEA) and CFTC regulations prohibiting fraudulent and deceptive practices.
In addition to the firm-level penalty, the CFTC levied a $500,000 civil monetary penalty against Ian Dibb, former CEO of TFS-ICAP, and Jeremy Woolfenden, former head of Emerging Markets desks. Both Dibb and Woolfenden were found to have failed to diligently supervise TFS-ICAP broker conduct, contributing to the unlawful practices. As part of the settlement, both men are barred from applying for registration or exemptions with the CFTC, or engaging in any activity requiring such registration, for a period of five years.
“Brokers and other intermediaries play a critical role in our markets,” stated CFTC Acting Director of Enforcement Vince McGonagle. “The CFTC will act to ensure that these entities communicate and report honest and accurate pricing information to protect the integrity of the markets.”
The investigation, initially filed on September 28, 2018, benefited from cooperation with the UK Financial Conduct Authority, which announced sanctions against TFS-ICAP Ltd. on November 23, 2020. The Office of the Attorney General for the State of New York also provided assistance during the probe.
The CFTC’s enforcement team included Sam Wasserman, Elizabeth May, Christopher Giglio, K. Brent Tomer, Lenel Hickson, Jr., and Manal M. Sultan.
Source: CFTC.gov
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