CFTC Fines FCM for Violations of Customer Protection Rule for Cleared Swaps

The CFTC issued an order requiring a firm that registered as a futures commission merchant ("FCM") and registered provisionally as a swap dealer to pay a penalty for failing to maintain sufficient U.S. dollars in segregated accounts in the United States. The Order found that the firm did not have in place adequate procedures to comply with the currency denomination requirements for cleared swaps customer collateral and did not train and supervise its personnel to ensure compliance with CFTC Regulations. As a result the CFTC found that the firm "failed to supervise diligently its officers, employees, and agents and did not have sufficient procedures in place to detect and deter the violations."

See: CFTC Press Release.Related news: CFTC Settles Enforcement Action in District Court for Floor Broker's Violation of CFTC Administrative Order(March 30, 2015); CFTC Orders ICE to Pay Civil Monetary Penalty for Recurring Data Reporting Violations (with Lofchie Comment) (March 16, 2015).