Bridging the Week by Gary DeWaal: Sept 9 - 13 and September 16, 2019 (Failure to Supervise; Misleading the CFTC; Audit Trail; Unauthorized Trading)

Published Date: September 16, 2019

An interdealer broker agreed to pay a fine of US $13 million to the Commodity Futures Trading Commission to resolve charges that it failed to supervise brokers on a swaps desk that allegedly made numerous false or misleading statements to customers regarding executions, bids and offers. The CFTC also claimed the firm failed to respond adequately when an employee raised concerns regarding the conduct of the relevant desk to the firm's compliance department. Additionally, another employee of the firm purportedly provided false or misleading information to the CFTC during a voluntary interview related to the Commission’s investigation. Separately, a futures commission merchant was sanctioned US $300,000 by the CFTC for allegedly not producing requested complete audit trail records of a customer until almost three years after the Commission's initial request. As a result, the following matters are covered in this week’s edition of Bridging the Week:

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Gary DeWaal

Gary DeWaal is currently Special Counsel with Katten Muchin Rosenman LLP in its New York office focusing on financial services regulatory matters. He provides advisory services and assists with investigations and litigation.

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Gary DeWaal
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