CFTC Orders London-based Enskilda Futures Ltd. and Its Swedish Principal, Skandinaviska Enskilda Banken AB, to Pay a $150,000 Civil Penalty for Supervision Violations (Press Release Order)

http://www.cftc.gov/PressRoom/PressReleases/pr6147-11

Order: Enskilda Futures Ltd., et al.

The CFTC issued an order filing and simultaneously settling charges against Enskilda Futures Ltd. (EFL), a London-based futures commission merchant (FCM), and Skandinaviska Enskilda Banken AB (SEB) for failing to diligently supervise accounts carried by EFL in violation of CFTC regulation 166.3. SEB is a financial services group incorporated in Sweden that, according to the order, controls and directs EFL's FCM activities. EFL's immediate parent company is a fully-owned subsidiary of SEB. The CFTC order requires EFL and SEB jointly and severally to pay a $150,000 civil monetary penalty.

The order finds that from at least February 5, 2010 through June 9, 2010, EFL maintained an inadequate system of supervision and internal controls to detect and deter potential violations of the CEA and CFTC regulations, such as wash or fictitious sales. Consequently, the order finds that EFL violated Commission regulation 166.3 because it failed to diligently supervise the handling by its partners, officers, employees, and agents of all commodity interest accounts carried, operated, advised or introduced by EFL, and all other activities of such persons relating to its business as a CFTC registrant.

Cross References: CFTC Rule 166.3; Lofchie's Guide to CPO/CTA Regulation: Chapter 10, Supervision