CFTC Settles Charges with Bank for Recordkeeping Violations

The CFTC simultaneously filed and settled charges with a bank for failing to create, maintain and promptly produce required confirmations for "Exchange for Related Position" ("EFRP") trades.

Among other violations, the CFTC Order asserted that the bank:

• entered into at least 3,717 metals and energy EFRP trades;

• failed to maintain and produce confirmations during the relevant period for at least 1,358 of these metals and energy EFRP trades; and

• took almost 14 months to locate and produce confirmations for the remaining metals and energy EFRP trades at issue as requested by the CFTC's Division of Enforcement.

The CFTC Order required the bank to: (i) cease and desist from further violations; and (ii) pay a $500,000 civil monetary penalty. The CFTC Order recognized the bank's cooperation during the investigation of this matter, as well as the "remedial action [the bank] undertook relating to its internal controls and policies for documenting and reporting confirmations for metal and energy EFRPs after October 16, 2012."