Washington, D.C. – Morgan Stanley Capital Services LLC has agreed to pay a $5 million penalty to settle charges brought by the Commodity Futures Trading Commission (CFTC) for failing to accurately report swap data, the agency announced Wednesday.
The CFTC found that since December 31, 2012, Morgan Stanley inaccurately reported data for approximately 3 million swaps, violating Section 2(a)(13)(F) and (G) of the Commodity Exchange Act and related CFTC regulations. The violations centered around inaccurate reporting of key economic terms, including Legal Entity Identifier (LEI), Unique Swap Identifier, notional amount, execution venue LEI, and price notation.
Furthermore, the agency determined that nearly half of Morgan Stanley’s reported swaps for a specific asset class were submitted outside of the required time parameters outlined in CFTC Regulation Part 43. These failures constitute significant breaches of the CFTC’s swap data reporting requirements, designed to increase transparency and mitigate systemic risk in the derivatives market.
“This case demonstrates once again the importance of complying with the CFTC’s swap data reporting requirements,” stated James McDonald, Director of the Division of Enforcement. “The CFTC will continue to scrutinize closely entities that do not meet their reporting obligations and, as appropriate, will continue to bring cases in this area.”
The penalty was reduced in recognition of Morgan Stanley’s cooperation with the Division of Enforcement’s investigation. As part of the settlement, Morgan Stanley is also required to retain a qualified outside consultant to verify the remediation of the root causes of the 29 identified swap data violations.
The CFTC acknowledged the assistance of the National Futures Association in the investigation, as well as contributions from staff within the Division of Market Oversight and the Office of Data and Technology.
Source: CFTC.gov
Related Federal Cases
- Stanley Moghalu, Murder for Informing, MD 2011 · Washington
- ATF Warns of Legal Policies: Linking to DOJ Sites at Your Own Risk · Illinois
- FDIC ComE-IN Panel No Defendant Found, Washington DC, Not Applicable · Washington
- Letitia James Challenges Trump EPA Endangerment Finding Reversal, N… · Pennsylvania
- Letitia James Sues Live Nation for Illegal Monopoly, New York NY, 2023 · Washington
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News