CFTC Settles Charges against Bank for Inaccurate Large Trader Reports

The CFTC simultaneously filed and settled charges against a London-based bank for failing to submit accurate large trader reports ("LTRs") for physical commodity swap positions. The CFTC noted that the bank has been provisionally registered with the CFTC as a Swap Dealer since December 12, 2012.

Among other violations, the bank submitted inaccurate LTRs containing inaccurate position information caused by missing or inaccurate prices in crude oil, natural gas, gasoline, heating oil and agricultural products (some of the incorrect information came from external vendors). The CFTC explained that although the bank subsequently detected and self-reported these errors to the Division of Market Oversight, it failed to keep records as required and was unable to submit complete corrected reports due to the inadvertent deletion of a portion of the underlying required data.

The bank agreed to: (i) pay a $560,000 civil monetary penalty; and (ii) cease and desist from committing further violations, as charged.