Washington, D.C. – Refinitiv US SEF LLC has been penalized $650,000 by the Commodity Futures Trading Commission (CFTC) for failing to accurately report swap data over a four-year period, the agency announced today.
The CFTC order details that from February 2016 through August 2020, Refinitiv failed to report key economic terms for at least 320,000 swap transactions. This constitutes a violation of Sections 2(a)(13)(G) and 4r(a)(1) of the Commodity Exchange Act, as well as CFTC Regulation 45.3, which mandates accurate and complete swap data reporting.
The investigation revealed that Refinitiv prioritized the specifications of its Swap Data Repository over the requirements of CFTC’s Part 45 regulations. Specifically, the company designated certain mandatory fields as optional within its reporting systems, leading to the omission of crucial data such as financial entity status and U.S. person indicators for counterparties.
Internal documentation showed Refinitiv was aware of potential reporting deficiencies as early as 2013, noting failures to report collateralization data and suspicions of broader reporting failures. A subsequent compliance review, conducted during the company’s full registration application, failed to identify the ongoing issues. The problems persisted until two clients brought the failures to Refinitiv’s attention, prompting a self-report to the CFTC and eventual remediation.
The CFTC acknowledged Refinitiv’s self-reporting, cooperation, and corrective actions, which resulted in a reduced civil monetary penalty. The agency emphasized the importance of accurate swap data reporting for market transparency and regulatory oversight.
Luke B. Marsh, Paul G. Hayeck, and Tobias Fischer of the Division of Enforcement led the investigation, with assistance from Ben DeMaria, Thomas Guerin, David Aron, Owen Kopon of the Division of Data, and Jasmine Lee of the Division of Market Oversight.
Source: CFTC.gov
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