BGCD Slapped by CFTC for Violating Swap Reporting and Core Principles
On September 30, the Commodity Futures Trading Commission (CFTC) issued an order simultaneously filing and settling charges against BGC Derivative Markets, L.P. (BGCD), a swap execution facility (SEF), for failing to report or accurately report thousands of swap transactions to the CFTC, a swap data repository (SDR), or the public; failing to timely correct reporting errors; and violating SEF Core Principles.
The order requires BGCD to cease and desist from further violations, pay a $1.9 million civil monetary penalty, and to comply with specified undertakings—including conducting a comprehensive review of its swaps reporting program and implementing a reconciliation process for transactions occurring on and reported by the SEF. The order further requires BGCD to submit a written report to the CFTC in one year. In the report, BGCD's Chief Compliance Officer and Chief Executive Officer must certify that BGCD's reconciliation process and compliance program are reasonably designed to detect and prevent violations of the Commodity Exchange Act (CEA) and CFTC regulations that are the subject of the order.
"Today's enforcement action highlights the importance of accurate and timely swaps reporting and makes clear that persistent and recurring reporting failures violate SEF Core Principles. Accurate and timely swaps reporting is necessary for the CFTC to safeguard the integrity of our markets and to ensure market transparency," said CFTC Acting Director of Enforcement Gretchen Lowe.
Source: CFTC
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