TP Americas Fined $13 Million by CFTC
- Voice brokers at the firm allegedly misled their clients and regulatory investigators
The Commodity Futures Trading Commission issued two orders filing and settling charges against Tullett Prebon Americas, TP ICAP's US subsidiary, last Friday.
TP Americas will have to pay a total of $13 million in fines for failing to supervise employees and making false or misleading statements to CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term staff.
The first order issued by the CFTC asks TP Americas to cease and desist from breaking the regulatory body's rules and pay an $11 million fine.
A document released by the CFTC indicates that voice brokers at TP Americas misled investors in order to entice them into trading dollar medium-term interest rate Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term.
More supervision
As a result, the inter-dealer broker will have to put in place a number of measures to supervise the swaps trading desk, including random reviews, monitoring software and direct supervision by another employee at the firm.
In its second order, the CFTC said that the inter-dealer broker must pay $2 million for misleading its representatives.
According to the CTFC, at least one TP Americas employee made false or misleading statements to investigators from the regulatory authority.
"The CFTC is devoted to ensuring price transparency and competition in all markets, whether electronically traded futures contracts or voice-brokered swaps,” said James McDonald, the CFTC's Director of Enforcement.
“As important, the CFTC is committed to ensuring that its investigations and fact gathering processes are not obstructed by false or misleading information.”
The Commodity Futures Trading Commission issued two orders filing and settling charges against Tullett Prebon Americas, TP ICAP's US subsidiary, last Friday.
TP Americas will have to pay a total of $13 million in fines for failing to supervise employees and making false or misleading statements to CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term staff.
The first order issued by the CFTC asks TP Americas to cease and desist from breaking the regulatory body's rules and pay an $11 million fine.
A document released by the CFTC indicates that voice brokers at TP Americas misled investors in order to entice them into trading dollar medium-term interest rate Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term.
More supervision
As a result, the inter-dealer broker will have to put in place a number of measures to supervise the swaps trading desk, including random reviews, monitoring software and direct supervision by another employee at the firm.
In its second order, the CFTC said that the inter-dealer broker must pay $2 million for misleading its representatives.
According to the CTFC, at least one TP Americas employee made false or misleading statements to investigators from the regulatory authority.
"The CFTC is devoted to ensuring price transparency and competition in all markets, whether electronically traded futures contracts or voice-brokered swaps,” said James McDonald, the CFTC's Director of Enforcement.
“As important, the CFTC is committed to ensuring that its investigations and fact gathering processes are not obstructed by false or misleading information.”