The Commodity Futures Trading Commission (CFTC) charged Goldman Sachs with violating its Business Conduct Standards for swap dealers.
On Monday, the Commodity Futures Trading Commission (CFTC) issued an order concurrently filing and resolving charges against Goldman Sachs & Co. LLC (Goldman) for violations of the CFTC’s Business Conduct Standards that are applicable to swap dealers. The settlement was finalized at the same time as the filing of the charges against Goldman.
The Commission found that Goldman Sachs violated Rules 23.431 and 23.433 by failing to disclose dozens of pre-trade mid-market prices (PTMMM). Goldman Sachs also violated the rules by communicating with clients in a way that was not fair and balanced. The Commission found that Goldman Sachs failed to communicate with clients fairly and balancedly.
Goldman Sachs violated CFTC rules. The violation was due to the failure to disclose pre-trade mid-market pricing for nearly all of its “same-day” swap executions between 2015 and 2016. The bank also admitted to providing inaccurate data for these swap executions, according to the agreement with the CFTC. This happened in 2015–2016.
Goldman Sachs fined $15m by CFTC
Goldman Sachs was hit with a civil penalty of $15 million by the Commodity Futures Trading Commission.
Business Conduct Standards were designed by the CFTC to open up the swaps market. The standards enhance equality in the swaps market by treating all parties fairly and transparently. The Commodity Futures Trading Commission (CFTC) is dedicated to ensuring that swap dealers adhere to these criteria. This will ensure that swap counterparties obtain disclosures before entering into swaps to examine material features. According to Ian P. CFTC Director of Enforcement McGinley said he will aggressively pursue swap dealers who break business conduct requirements. Today’s penalty against Goldman serves as a demonstration of the CFTC’s commitment to enforcing these standards.