An interdealer broker settled two separate CFTC charges for making false or misleading statements to its customers and to CFTC investigators.
In the first Order, the CFTC found that Tullett Prebon Americas Corp. ("Tullett") failed to supervise voice broker-dealers on its U.S. Dollar Medium-Term Interest Rate Swaps Desk. To settle the charges, Tullett agreed to (i) pay a civil monetary penalty of $11 million, (ii) cease and desist from further violating CFTC rules, and (iii) comply with certain conditions and undertakings.
In the second Order, the CFTC found that Tullett employees on the U.S. Dollar Medium-Term Interest Rate Swaps Desk made false statements to Tullett customers relating to certain trades, bids and offers. In addition, during the CFTC investigation, at least one Tullett employee made false statements to CFTC staff. To settle the charges, Tullett agreed to (i) pay a civil monetary penalty of $2 million and (ii) comply with certain conditions and undertakings that were previously consented to in the CFTC offer.
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