A financial communications company settled CFTC charges for operating an unregistered swap execution facility ("SEF").
According to the Order, the CFTC found that the company's platform allowed swap market participants to (i) populate a request for quote (or "RFQ") by setting various swap product parameters and (ii) send RFQs to other swap market participants. The CFTC found that this structure rendered the platform a multiple-to-multiple platform that would require SEF registration.
As a result of its findings, the CFTC determined that the firm violated Section 5h(a)(1) of the CEA and CFTC Rule 37.3(a)(1) ("Requirements for Registration").
To settle the charges, the company agreed to (i) cease and desist from future violations, (ii) pay a $100,000 civil monetary penalty (a reduced penalty to reflect the company's substantial cooperation and remediation) and (iii) an undertaking to refrain from any public statement that would invalidate the Order.
Primary Sources
- FTC Order: Symphony Communication Services, LLC
- CFTC Press Release: CFTC Orders California Company to Pay $100,000 for Failing to Register as a Swap Execution Facility
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