A financial communications company settled CFTC charges for operating an
unregistered swap execution facility ("SEF").
According to the Order, the CFTC found that the company's
platform allowed swap market participants to (i) populate a request
for quote (or "RFQ") by setting various swap product
parameters and (ii) send RFQs to other swap market participants.
The CFTC found that this structure rendered the platform a
multiple-to-multiple platform that would require SEF
registration.
As a result of its findings, the CFTC determined that the firm
violated
Section 5h(a)(1) of the CEA and CFTC
Rule 37.3(a)(1) ("Requirements for
Registration").
To settle the charges, the company agreed to (i) cease and
desist from future violations, (ii) pay a $100,000 civil monetary
penalty (a reduced penalty to reflect the company's substantial
cooperation and remediation) and (iii) an undertaking to refrain
from any public statement that would invalidate the Order.
