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CFTC Touts Results of "Enforcement Sprint"

"[The enforcement sprint initiative] not only allowed the CFTC to wrap up these six matters efficiently and conserve resources, but it was also part of a larger effort to help DOE clean up its overall docket and prioritize pursuing fraudsters and other wrongdoers going forward."
Charles Marvine, CFTC Acting Chief of the Retail Fraud and General Enforcement Task Force
"[The enforcement sprint initiative] not only allowed the CFTC to wrap up these six matters efficiently and conserve resources, but it was also part of a larger effort to help DOE clean up its overall docket and prioritize pursuing fraudsters and other wrongdoers going forward."
Charles Marvine, CFTC Acting Chief of the Retail Fraud and General Enforcement Task Force

The CFTC resolved a series of enforcement actions related to compliance violations that did not involve fraud, customer harm, or market abuse. 

The CFTC said that under Acting Chair Caroline D. Pham’s "enforcement sprint" initiative, eligible firms submitted remediation plans and reasonable settlement offers guided by past cases and its Advisory on Self-Reporting, Cooperation, and Remediation. (See related coverage.)

The CFTC reported the following: 

  • Supervision and Systems Violations. The CFTC sanctioned a registered swap dealer and affiliated futures commission merchants ("FCMs") for failing to maintain effective trade surveillance programs, imposing a $5 million penalty and requiring remediation, lookbacks, and governance enhancements. 
  • Recordkeeping Violations.  A number of the settlements involved recordkeeping violations related to the use of electronic communications that were not retained. 
  • Swap Data Reporting Violations. The CFTC sanctioned a registered swap dealer for swap valuation reporting errors affecting about 80,000 swaps. The CFTC credited the firm’s self-reporting and remediation, imposing a $325,000 reduced penalty.

Acting Chair Caroline D. Pham said the enforcement sprint was designed to address a growing backlog of technical compliance cases that had diverted resources from the agency’s core mission of combating fraud and market abuse. She said the initiative achieved its goal by allowing firms to resolve longstanding compliance matters efficiently, enabling enforcement staff to refocus on protecting investors and market integrity.

Primary Sources

  1. CFTC: Press Release: Acting Chairman Pham Announces Successful Completion of Enforcement Sprint
  2. CFTC: Order: UBS AG, UBS Financial Services Inc., and UBS Securities LLC
  3. CFTC: Order: Citigroup Global Markets Inc.
  4. CFTC: Order: SMBC Capital Markets, Inc.
  5. CFTC: Order: Banco Santander, S.A. and Santander US Capital Markets LLC
  6. CFTC: Order: The Bank of New York Mellon and BNY Mellon Securities Corporation
  7. CFTC: Order: U.S. Bank National Association

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Tags

Individuals
Caroline D. Pham
Regulated Activities
Enforcement Procedures Recordkeeping Supervision / Compliance
Regulated Entities
FCMs and IBs, Floor Brokers Swap Dealers / SBSDs
Regulated Products
Futures / Security Futures Swaps / SBS
Body of Law
CEA Regulation
Jurisdiction
US - Federal
Organization
CFTC, NFA, CFTC Markets
Sub-Author
CFTC