CFTC fines Societe Generale for swaps reporting and mark-to-market failures
30 September 2021 US
Image: AdobeStock/HVEPhoto
Societe Generale SA has become the latest swap dealer to be penalised by the US Commodity Futures Trading Commission (CFTC) for failing to maintain an adequate supervisory framework and controls.
The provisionally registered swap dealer has been fined US$1,500,000 by the US derivatives market regulator for failing to comply with swap dealer requirements for disclosing mid-market marks to counterparties, reporting inaccurate swap valuation data to a swaps data repository (SDR), and for other breaches.
The CFTC order states that between 2013 and mid-2021, Societe Generale failed to meet its mid-market mark disclosure requirements relating to certain swaps, providing inaccurate daily marks because Societe Generale had adjusted these for profit, for hedging purposes or for other legally impermissible reasons.
The company also failed to maintain an effective supervisory system and to perform its supervisory duties effectively regarding mid-market mark disclosures.
CFTC acting director of enforcement Vincent McGonagle says: “Swap dealer registrants must ensure that they make complete and accurate disclosures to counterparties and accurately report swap valuation data to SDRs, and must also diligently perform their supervisory duties."
This penalty action from the CFTC follows a US$650,000 imposed yesterday on Refinitiv SEF US for swap reporting failures and a US$1 million penalty applied to Citibank N.A. and Citigroup Global Markets Ltd for swap data reporting violations and associated supervisory failures.
The provisionally registered swap dealer has been fined US$1,500,000 by the US derivatives market regulator for failing to comply with swap dealer requirements for disclosing mid-market marks to counterparties, reporting inaccurate swap valuation data to a swaps data repository (SDR), and for other breaches.
The CFTC order states that between 2013 and mid-2021, Societe Generale failed to meet its mid-market mark disclosure requirements relating to certain swaps, providing inaccurate daily marks because Societe Generale had adjusted these for profit, for hedging purposes or for other legally impermissible reasons.
The company also failed to maintain an effective supervisory system and to perform its supervisory duties effectively regarding mid-market mark disclosures.
CFTC acting director of enforcement Vincent McGonagle says: “Swap dealer registrants must ensure that they make complete and accurate disclosures to counterparties and accurately report swap valuation data to SDRs, and must also diligently perform their supervisory duties."
This penalty action from the CFTC follows a US$650,000 imposed yesterday on Refinitiv SEF US for swap reporting failures and a US$1 million penalty applied to Citibank N.A. and Citigroup Global Markets Ltd for swap data reporting violations and associated supervisory failures.
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