A futures commission merchant ("FCM") settled CFTC charges for supervisory performance and other regulatory failures in connection with its traditional block trading futures brokerage businesses.
According to the CFTC's finding, the FCM, a futures industry voice broker, failed to establish adequate supervisory procedures and to diligently supervise its personnel concerning (i) certain recordkeeping obligations, including the production of audit trail and other business-related documents in a timely manner, (ii) required notifications of senior change management and of other regulatory investigations, and (iii) chief compliance officer obligations, including reporting requirements on material noncompliance issues and remediation efforts.
To settle the charges, the FCM agreed to (i) cease and desist from further violations of CFTC regulations, (ii) pay a civil monetary penalty of $3,000,000, and (iii) comply with other specific "conditions and undertakings."
