A French swap dealer and its former employee settled CFTC charges for mismarking swap positions to inflate profits and minimize losses or to "smooth out returns."
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The SEC Division of Trading and Markets provided instructions to security-based swap entities on documentation submissions under (i) SEC capital margin and segregation rules and (ii) SBS valuation dispute notices related to portfolio reconciliation.
A former managing director of a bank agreed to pay $350,000 to settle CFTC charges for illegally "mismarking" swap valuations in an effort to hide significant trading losses. According to the CFTC Order, the former managing director mismarked the valuations of swap instruments in an attempt to cover up significant trading losses incurred by entering false "end-of-day" marks into an internal bank spreadsheet utilized for internal asset valuations. In connection with this action, the CFTC Division of Enforcement closed its investigation. The CFTC noted that its decision to terminate the
The National Futures Association issued a reminder to swap dealers regarding the obligation to report swap valuation disputes.
The National Futures Association reminded firms that changes to filing requirements for swap valuation dispute notices and monthly swap dealer risk data reports will become applicable in January 2018.