CFTC Orders E*TRADE Securities, Clearing to Pay $280K for Supervisory Failures

CFTC has levied a joint civil monetary penalty against E*TRADE's subsidiaries.

The US Commodity Futures Trading Commission (CFTC) has issued an order simultaneously filing and settling charges against brokerage group E*TRADE Securities LLC, and subsidiary E*TRADE Clearing LLC, a Futures Commission Merchant (FCM), for their non-compliance with applicable record-keeping rules, according to a regulatory filing.

To unlock the Asian market, register now to the iFX EXPO in Hong Kong.

Join the iFX EXPO Asia and discover your gateway to the Asian Markets

Suggested articles

InstaForex Partners Pay Tribute to Loprais Team in Prague VisitGo to article >>

The nature of the order stems from a combination of supervisory shortcomings and non-compliance with existing record-keeping rules for FCMs. Both entities agreed to a settlement of a $280,000 Civil Monetary Penalty for the aforementioned violations.

The CFTC Order found that between October 2009 and January 25, 2014, E*TRADE Securities did not properly preserve and maintain requisite audit trail logs for their client base. E*TRADE Clearing also did not maintain customer audit trail logs after becoming registered as an FCM in February 2013.

In particular, the order found that by not maintaining these records, E*TRADE Securities and E*TRADE Clearing violated specific sections of the Commodity Exchange Act (CEA) as well as CFTC Regulations (1.31 and 1.35). Consequently, the CFTC Order required both E*TRADE Securities and E*TRADE Clearing to jointly to pay a $280,000 civil monetary penalty and to cease and desist from further violations of the CEA.

Got a news tip? Let Us Know