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 staff.

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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.

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.

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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.”


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