CFTC fines Barclays over trade confirmation fails
23 September 2016 | 4714 views | 0
The U.S. Commodity Futures Trading Commission (CFTC) today issued an Order filing and simultaneously settling charges against Barclays Bank PLC (Barclays) for failing to create, maintain, and promptly produce required confirmations for a significant number of Exchange for Related Position (EFRP) trades in violation of CFTC Regulations.
Barclays is a global banking and financial services company based in the United Kingdom, as well as a provisionally registered swap dealer with the CFTC.
The CFTC Order requires Barclays to pay a $500,000 civil monetary penalty and to cease and desist from committing further violations of the relevant CFTC Regulations.
The Order finds that, from at least September 1, 2009 to October 16, 2012, Barclays entered into at least 3,717 metals and energy EFRP trades. Barclays did not maintain and could not produce confirmations during the relevant period for at least 1,358 of these metals and energy EFRP trades, in violation of a CFTC Regulation. Further, the Order finds that, in response to document requests from the CFTC’s Division of Enforcement, Barclays took almost 14 months to locate and produce confirmations for the remaining metals and energy EFRP trades at issue. By failing to produce EFRP confirmations to the CFTC in a timely manner, Barclays violated another CFTC Regulation.
The Order recognizes Barclays’s cooperation during the CFTC’s investigation of this matter, as well as the remedial action Barclays undertook relating to its internal controls and policies for documenting and reporting confirmations for metal and energy EFRPs after October 16, 2012.
The CFTC Division of Enforcement staff members responsible for this case are Rachel Hayes, Stephen Turley, Thomas Simek, Jeffrey Le Riche, and Charles Marvine.