CFTC Settles 12 Enforcement Actions For Registration, Recordkeeping And Other Violations

Hogan Lovells Cadwalader is a global law firm trusted by clients to deliver on complex, high-stakes matters.

Operating at the intersection of business, finance, and government, we bring an unwavering commitment to client service and the decisive counsel that helps clients achieve exceptional results.

Consistently recognized for innovation across legal services, we combine sharp judgment with deep commercial perspective and intellectual rigor to address critical, cutting-edge challenges.

With 3,100 lawyers worldwide, we offer global scale with strong local insight in the markets that matter most. Our commitment extends beyond client work through pro bono activities, community investment, and responsible business practices.

Explore Firm Details

A Texas company agreed to pay $75,000 to settle CFTC charges of failing to register as a commodity trading advisor.

United States Finance and Banking

Article Insights

Hogan Lovells Cadwalader are most popular:

within Intellectual Property, Food, Drugs, Healthcare, Life Sciences and Transport topic(s)

On September 14, 2018, the CFTC filed and settled 12 enforcement actions against multiple firms and individuals regarding registration, position limits, recordkeeping, supervisory and reporting violations.

Forex and Binary Options

In separate actions, eight unregistered entities and individuals settled CFTC charges of offering foreign exchange ("forex") and binary options without (i) registering with the CFTC or (ii) receiving an exemption from the requirement to register.

Unregistered Commodity Trading Advisor

A Texas company agreed to pay $75,000 to settle CFTC charges of failing to register as a commodity trading advisor. While unregistered, the company allegedly (i) engaged in OTC swaps and commodity options trading advice and (ii) furnished commodity trading advice to at least 15 people.

Speculative Position Limits

A Hong Kong company will pay $300,000 to settle CFTC charges of exceeding speculative position limits for soybean futures contracts and failing to report fixed price cash positions in the products to the CFTC.

Audit Trail Information

A registered futures commission merchant intends to pay $160,000 to settle CFTC charges of failing to maintain the electronic audit trail information of 65 clients. Although it received the audit trail data, the merchant's systems allegedly "corrupted the data," leading to approximately 8.4 million faulty records.

Swap Transaction Reporting Obligations

A provisionally registered non-U.S. swap dealer consented to pay $750,000 to settle CFTC charges of failing to accurately report swap transactions to a registered swap data repository ("SDR"). According to the Order, the swap dealer under-reported, over-reported, misreported and failed to report thousands of transactions to an SDR.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

[View Source]