CFTC Fines Cargill $750,000 for Swap Reporting Failures

The US Commodity Futures Trading Commission (CFTC) announced that it has filed and settled charges against Cargill Inc., a provisionally registered swap dealer doing business through its Cargill Risk Management business unit, for failing to comply with its reporting obligations as a swap dealer and failing to supervise its reporting obligations adequately.

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The official announcement by the CFTC detailed that from June 2017 to June 2019, Cargill failed to include new swaps in its daily large trader reports (LTRs) and its submissions on CFTC Form 102S.

In addition, from approximately July 2019 to November 2019, Cargill’s LTRs included inaccurate values for commodity reference price and volume. The omission of new swaps occurred after Cargill changed its swap data reporting from one swap data repository (SDR) to another and failed to update its reporting feeds to fully incorporate data from the new SDR.

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The order also finds that Cargill failed in its supervisory duties because it did not have adequate internal processes in place to determine the accuracy or completeness of its swap reporting and did not notice the omission of new swaps.

CFTC imposed a $750,000 civil monetary penalty and asked Cargill cease and desist from any further violations of the Commodity Exchange Act or CFTC regulations.