Wednesday, January 20States Top Leading News (STL.News)

Tag: cftc

CFTC and CONSOB Sign MOU for Supervision of Cross-Border Firms
Business

CFTC and CONSOB Sign MOU for Supervision of Cross-Border Firms

Washington, DC (STL.News) The Commodity Futures Trading Commission and the Commissione Nazionale per le Società e la Borsa (CONSOB) today announced the signing of a Memorandum of Understanding (MOU) regarding cooperation and the exchange of information in the supervision and oversight of regulated firms that operate on a cross-border basis in the United States and in Italy. Through the MOU, the CFTC and the CONSOB express their willingness to cooperate in the interest of fulfilling their respective regulatory mandates in the context of supervising firms within the scope of the MOU.  The MOU establishes a framework for cooperation, contemplates the sharing of information, and provides procedures for examinations. “This MOU builds upon the longstanding cooperative relationship between ...
CFTC Grants Nasdaq Futures, Inc. Request to Vacate DCM Designation
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CFTC Grants Nasdaq Futures, Inc. Request to Vacate DCM Designation

Washington, DC (STL.News) The Commodity Futures Trading Commission announced today that it issued an order vacating the designation of Nasdaq Futures, Inc. (NFX) as a designated contract market (DCM).   The order was issued at the request of NFX.  The CFTC had granted NFX designation as a contract market on November 21, 2014. The Commodity Exchange Act and CFTC regulations state that a DCM may request that its designation be vacated by filing a request with the CFTC at least 90 days prior to the requested date of vacation.  Per NFX’s request, the order revokes NFX’s designation effective September 16, 2020. With the vacation of NFX’s designation as a DCM there will be 15 DCMs registered with the CFTC.
CFTC Awards Whistleblower for Exposing Ongoing Fraud
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CFTC Awards Whistleblower for Exposing Ongoing Fraud

Washington, DC (STL.News) The Commodity Futures Trading Commission Friday announced it has issued a whistleblower award to an individual whose information led the Commission to open an investigation into ongoing fraudulent activity and successfully bring an enforcement action.  In addition to the initial tip, the whistleblower also provided extensive assistance, including documents that were essential to establishing wrongdoing.  This additional support enabled the CFTC to take action more quickly and conserve resources. “The violations would have been difficult to detect without the whistleblower’s information and assistance,” said Division of Enforcement Director James McDonald.  “This matter highlights the importance of the Commission’s Whistleblower Program to the agency’s enforcement...
CFTC Charges 20 Entities for Making False Registration Claims
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CFTC Charges 20 Entities for Making False Registration Claims

Washington, DC (STL.News) The Commodity Futures Trading Commission today announced the filing of charges against 20 entities for making false and misleading claims of having CFTC registration and National Futures Association (NFA) membership required to offer services related to trading in foreign exchange (forex), digital assets, and derivatives.  Each complaint seeks orders directing the entities to cease and desist from committing violations of the Commodity Exchange Act and CFTC regulations. “Today’s actions are the latest examples of the CFTC’s efforts to aggressively root out fraud and bad actors involved in our markets,” said Division of Enforcement Director James McDonald. “As these actions show, the CFTC will act decisively to prevent false claims of CFTC or NFA registration.” T...
CFTC Orders The Bank of Nova Scotia to Pay $127.4 Million
Business

CFTC Orders The Bank of Nova Scotia to Pay $127.4 Million

CFTC Orders The Bank of Nova Scotia to Pay $127.4 Million for Spoofing, False Statements, Compliance and Supervision Violations Record Civil Monetary Penalties Levied for Spoofing, False Statements, and Swap Dealer Compliance and Supervision Violations Washington, DC (STL.News) The Commodity Futures Trading Commission today issued three orders filing and settling charges against The Bank of Nova Scotia (BNS), a provisionally registered swap dealer, resolving two separate enforcement actions.  The combined orders require BNS to pay $127.4 million for spoofing and making false statements, as well as for swap dealer compliance and supervision violations and additional false statements. “These record-setting penalties reflect not only our commitment to being tough on those who break the rules...
CFTC Orders Interactive Brokers LLC to Pay More Than $12 Million for Anti-Money Laundering and Supervision Violations
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CFTC Orders Interactive Brokers LLC to Pay More Than $12 Million for Anti-Money Laundering and Supervision Violations

First Case to Charge Violations of CFTC’s Bank Secrecy Act Compliance Regulations Washington, DC (STL.News) The Commodity Futures Trading Commission today filed and simultaneously settled charges against Interactive Brokers LLC, a registered futures commission merchant (FCM), for failing to diligently supervise its officers’, employees’, and agents’ handling of several commodity trading accounts and failing to adequately implement procedures to detect and report suspicious transactions as required under federal anti-money laundering (AML) laws and regulations. Brought in connection with the Division of Enforcement’s Bank Secrecy Act Task Force, this case marks the first CFTC enforcement action charging a violation of Regulation 42.2, which requires registrants to comply with the Bank Secre...
CFTC Withdraws “ANE” Staff Advisory and Issues New Cross-Border No-Action Relief
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CFTC Withdraws “ANE” Staff Advisory and Issues New Cross-Border No-Action Relief

Washington, DC (STL.News) In conjunction with the Commission’s approval of the final cross-border rule today, the Divisions of Swap Dealer and Intermediary Oversight (DSIO), Clearing and Risk (DCR), and Market Oversight (DMO) today withdrew a staff advisory and no-action relief regarding certain cross-border situations and issued new no-action relief. Specifically, the Divisions took the following actions in response to public comments to the rulemaking: DSIO has withdrawn CFTC Staff Advisory 13-69, relating to swaps between a non-U.S swap dealer and counterparties that are not U.S. persons where the non-U.S. swap dealer uses personnel or agents located in the U.S. to “arrange, negotiate, or execute” the swaps (ANE Transactions); The Divisions have withdrawn CFTC Staff Letter 17-36, ...
CFTC Approves Final Swap Dealer Capital Rule at July 22 Open Meeting
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CFTC Approves Final Swap Dealer Capital Rule at July 22 Open Meeting

CFTC Completes All Required Rulemakings Under Section 731 of the Dodd-Frank Act Washington, DC (STL.News) The Commodity Futures Trading Commission at its open meeting Wednesday approved a final rule regarding new capital and financial reporting requirements for swap dealers (SDs) and major swap participants (MSPs).  Adoption of this rule marks the completion of the CFTC’s required rule-makings under Section 731 of the Dodd-Frank Act, which was enacted 10 years ago this week. Final Rule: Capital Requirements of Swap Dealers and Major Swap Participants On a 3-2 vote, the Commission approved a final rule imposing new capital requirements on SDs and MSPs that are not subject to supervision by a banking regulator, and imposing financial reporting requirements for SDs and MSPs generally.  The ...
CFTC Announces Whistleblower Awards Totaling More Than $1 Million
Business

CFTC Announces Whistleblower Awards Totaling More Than $1 Million

Washington, DC (STL.News) The Commodity Futures Trading Commission today announced it will award more than $1 million to two whistleblowers who voluntarily provided original information that led the Commission to bring a successful enforcement action.  The CFTC opened an investigation after the first whistleblower’s information was deemed to be sufficiently specific, credible, and timely.  The second whistleblower significantly contributed to the matter by providing investigative staff with first-hand information obtained through participation in the underlying scheme. “These awards stand as yet another indication of the significance of whistleblowers to our enforcement program,” said CFTC Director of Enforcement James McDonald.  “We have seen a clear trend identifying the increasing impo...
CFTC Sanctions Two Firms Offering Digital Asset-Based Swaps for Illegal Off-Exchange Trading and Registration Violations
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CFTC Sanctions Two Firms Offering Digital Asset-Based Swaps for Illegal Off-Exchange Trading and Registration Violations

Plutus Financial, Inc. d.b.a. Abra of California, and Plutus Technologies Philippines Corp. d.b.a. Abra International of the Philippines charged by CFTC Washington, DC (STL.News) The Commodity Futures Trading Commission today issued an order filing and settling charges against respondents Plutus Financial, Inc. d/b/a Abra of California, and Plutus Technologies Philippines Corp. d/b/a Abra International of the Philippines for entering into illegal off-exchange swaps in digital assets and foreign currency with U.S. and overseas customers and registration violations.  This case was brought in connection with the Division of Enforcement’s Digital Asset Task Force. The order requires the respondents to pay a $150,000 civil monetary penalty and to cease and desist from further violations of the...
Federal Court Orders Joshua Christian McDonald, Perfection PR Firm, LLC to Pay Nearly $1.3 Million in Forex Fraud Scheme
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Federal Court Orders Joshua Christian McDonald, Perfection PR Firm, LLC to Pay Nearly $1.3 Million in Forex Fraud Scheme

Washington, DC (STL.News) The Commodity Futures Trading Commission today announced that the U.S. District Court for the Eastern District of Missouri entered an order of default judgment finding that Joshua Christian McDonald and his company, Perfection PR Firm LLC (PPR), committed fraud, misappropriated customer funds, and operated without proper registration.  The defendants operated out of California and Tennessee. The court’s June 9, 2020 order requires the defendants to pay $360,565 in restitution to defrauded customers and a civil monetary penalty of $935,907.  Additionally, the order permanently enjoins the defendants from engaging in conduct that violates the Commodity Exchange Act, from registering with the CFTC, and from trading in any CFTC-regulated markets. The order resolves ...
CFTC to Hold an Open Commission Meeting on June 25
Business

CFTC to Hold an Open Commission Meeting on June 25

Washington, DC (STL.News) Commodity Futures Trading Commission (CFTC) Chairman Heath P. Tarbert today announced the CFTC will hold an open meeting on Thursday, June 25, 2020 at 10:00 a.m. (EDT).  The meeting will be held via conference call in accordance with the agency’s implementation of social distancing due to the COVID-19 (coronavirus) pandemic. The Commission will consider the following: Final Rule: Exemption from the Swap Clearing Requirement for Certain Affiliated Entities – Alternative Compliance Frameworks for Anti-Evasionary Measures (Inter-Affiliate Exemption 50.52) Final Rule: Post-Trade Name Give-Up on Swap Execution Facilities Proposed Rule: Electronic Trading Risk Principles Withdrawal of the Proposed Rule and Supplemental Proposal for Regulation AT Proposed Rul...
Federal Court Orders Trading Advisor, Brett G. Hartshorn to Pay $890,000 for Defrauding Church
Business

Federal Court Orders Trading Advisor, Brett G. Hartshorn to Pay $890,000 for Defrauding Church

Federal Court Orders Trading Advisor, Brett G. Hartshorn to Pay $890,000 for Defrauding Church and Community Members in Forex Scheme Washington, DC (STL.News) The Commodity Futures Trading Commission today announced that the U.S. District Court for the Southern District of New York entered a consent order for permanent injunction and other equitable relief against defendant Brett G. Hartshorn of Sarasota, Florida, finding, among other things, that he fraudulently solicited at least 13 individuals to trade off-exchange foreign currency derivatives (“forex”) and misappropriated funds of at least two of those clients.  The order requires that he pay restitution of $890,000 and imposes permanent trading and registration bans. The order finds—and Hartshorn admits—that from at least June 18, 20...
CFTC Charges Silver Star FX, LLC, Silver Star Live, Silver Star Live Software, LLC, David Wayne Mayer
Business

CFTC Charges Silver Star FX, LLC, Silver Star Live, Silver Star Live Software, LLC, David Wayne Mayer

CFTC Charges Silver Stsar FX, LLC, Silver Star Live, Silver Star Live Software, LLC and David Wayne Mayer for sales solicitation fraud and failing to register with the CFTC Washington, DC (STL.News) The Commodity Futures Trading Commission today filed a complaint in the U.S. District Court for the Northern District of Georgia against Silver Star FX, LLC d/b/a Silver Star Live (SSL), a former New Mexico limited liability company, Silver Star Live Software LLC (SSLS), a Florida limited liability company, and David Wayne Mayer of Roswell, Georgia.  The complaint charges all three defendants with sales solicitation fraud and failing to register with the CFTC. The complaint alleges that from at least July 2018 to March 2019, the defendants fraudulently solicited customers to open discretionary...
CFTC Unanimously Approves an Interim Final Rule and a Proposed Rule at May 28 Open Meeting
Business

CFTC Unanimously Approves an Interim Final Rule and a Proposed Rule at May 28 Open Meeting

Washington, DC (STL.News) The Commodity Futures Trading Commission at its open meeting today unanimously approved an interim final rule to grant an extension of the compliance schedule for initial margin requirements for uncleared swaps in response to operational challenges certain entities are facing due to the COVID-19 (coronavirus) pandemic.  The Commission also unanimously approved a proposed rule which provides an exemption from registration as a commodity pool operator (CPO) for certain foreign persons. Interim Final Rule: Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants The Commission unanimously approved an interim final rule (IFR), which defers the compliance date of September 1, 2020 for the initial margin requirements under the CFTC Margin Rul...
CFTC Charges Casper Mikkelsen in $1.5 Million Forex Fraud Scheme
Business

CFTC Charges Casper Mikkelsen in $1.5 Million Forex Fraud Scheme

CFTC Monday announced charging Casper Mikkelsen, a.k.a. Carsten Nielsen, a.k.a. Brian Thomson, a.k.a. Thomas Jensen, a.k.a. Casper Muller with engaging in a $1.5 million foreign currency fraud scheme Washington, DC (STL.News) The Commodity Futures Trading Commission (CFTC) Monday announced the filing of an enforcement action in the U.S. District Court for the Southern District of New York, charging defendant Casper Mikkelsen, a/k/a “Carsten Nielsen,” a/k/a “Brian Thomson,” a/k/a “Thomas Jensen,” a/k/a Casper Muller,” a resident of Denmark, with engaging in a $1.5 million foreign currency (forex) fraud scheme and registration violations. “This complaint reaffirms our steadfast commitment to working in parallel with foreign authorities to protect participants in our markets and hold fraudst...
CFTC Wins Forex Fraud Trial on Damages and Obtains Monetary Judgment of More than $22.6 Million
Business

CFTC Wins Forex Fraud Trial on Damages and Obtains Monetary Judgment of More than $22.6 Million

Court Releases Pallet of Foreign Currency Valued at $2.5M to CFTC Washington, DC (STL.News) The Commodity Futures Trading Commission today announced that following a bench trial the U.S. District Court for the Middle District of Alabama entered a final judgment against defendants Husam Tayeh of Illinois and his companies, Dinar Corp., Inc. and My Monex, Inc., both Nevada corporations.  The court’s ruling orders the defendants to pay more than $22.6 million in disgorgement and civil monetary penalties in connection with Tayeh’s fraudulent foreign currency (forex) scheme.  The court previously found the defendants liable for violations of the Commodity Exchange Act, including fraud. “This ruling reaffirms the CFTC’s commitment to working in parallel with our enforcement counterparts at the ...
CFTC Seeks to Revoke Registrations of Commodity Pool Operator Phy Capital Investments, LLC and its CEO
Business

CFTC Seeks to Revoke Registrations of Commodity Pool Operator Phy Capital Investments, LLC and its CEO

CFTC Seeks to Revoke Registrations of Commodity Pool Operator Phy Capital Investments, LLC and its CEO, Fabio Bretas de Freitas, former resident of Miami, FL Washington, DC (STL.News) The Commodity Futures Trading Commission today filed a Notice of Intent to revoke the registrations of Phy Capital Investments, LLC (PCI), a registered commodity pool operator with its principal place of business in Miami, Florida, and its chief executive officer and registered associated person, Fabio Bretas de Freitas (Bretas), a former resident of Miami, Florida. The notice alleges that PCI and Bretas are subject to statutory disqualification from CFTC registration based on an order and judgment by default entered by the U.S. District Court for the Southern District of New York on October 3, 2019. [See CF...