Washington D.C. – The Northern Trust Company has agreed to pay a $1 million penalty to settle charges brought by the Commodity Futures Trading Commission (CFTC) for widespread failures in reporting swap transactions, the agency announced Monday.
The CFTC alleges that from 2013 through at least 2018, the Chicago-based financial institution – a provisionally registered swap dealer – failed to accurately report hundreds of thousands of swap transactions to a designated swap data repository, violating requirements outlined in the Commodity Exchange Act (CEA) and related CFTC regulations (Parts 23, 43, and 45).
According to the CFTC’s order, the reporting errors stemmed from inadequate supervision of the swap dealer’s compliance program. Investigators found that Northern Trust repeatedly hired compliance personnel who lacked the necessary technical expertise to ensure adherence to swap reporting rules.
The CFTC acknowledged Northern Trust’s substantial cooperation with the investigation conducted by the Division of Enforcement and the company’s subsequent efforts to remediate the issues. This cooperation factored into the determination of a “substantially reduced” civil monetary penalty, according to the agency.
Jason T. Wright, Patricia Gomersall, Luke B. Marsh, and Paul G. Hayeck of the Division of Enforcement led the investigation. The case highlights the CFTC’s ongoing focus on enforcing accurate swap data reporting, a critical component of financial market transparency and risk management.
The order mandates the $1,000,000 penalty and further unspecified sanctions, details of which were not immediately disclosed. Northern Trust did not immediately respond to requests for comment.
Source: CFTC.gov
Related Federal Cases
- Usama Malik, Securities Fraud, N.J. 2021 · Virginia
- Thomas E. Delahanty II, Election Fraud Crackdown, Maine, 2016 · New Mexico
- Jensen Moors Pleads Guilty to Health Care Fraud, Lauderdale Lakes F… · Florida
- Jill Murray, Wire Fraud, D.C. 2024 · Washington
- Michelle Cho, Wire Fraud Conspiracy, DC 2023 · Washington
