CFTC Settles Charge That Bank Submitted Inaccurate Large Trader Reports

The CFTC settled charges that a bank and its energy subsidiary failed to submit accurate large trader reports ("LTRs") for physical commodity swap positions.

The CFTC determined that the bank and its subsidiary filed LTRs that contained the following errors:

• information that appeared in the wrong data fields;
• incorrect or missing values;
• positions attributed to the wrong entities; and
• incorrectly reported counterparty names.

As a result of these errors, the CFTC claimed that the bank and its subsidiary inaccurately reported their positions in various commodities.

The bank and its subsidiary responded to the charges by (i) modifying their data processing and reporting systems to comply with LTR reporting requirements, (ii) correcting errors identified in the CFTC Order, and (iii) submitting corrected historical LTRs.

The CFTC Order required the bank and its subsidiary to pay a $225,000 civil monetary penalty.