MIL-OSI USA: CFTC Orders Cargill to Pay $750,000 for Swap Reporting Failures and Failure to Supervise

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Source: US Commodity Futures Trading Commission

Washington, D.C. — The Commodity Futures Trading Commission today issued an order simultaneously filing and settling charges against Cargill Inc., a provisionally registered swap dealer doing business through its Cargill Risk Management business unit, for failing to comply with its reporting obligations as a swap dealer and failing to supervise its reporting obligations adequately. The order requires Cargill to pay a $750,000 civil monetary penalty and to cease and desist from any further violations of the Commodity Exchange Act or CFTC regulations, as charged.

Case Background

The order specifically finds that from approximately June 2017 to June 2019, Cargill failed to include new swaps in its daily large trader reports (LTRs) and its submissions on CFTC Form 102S. In addition, from approximately July 2019 to November 2019, Cargill’s LTRs included inaccurate values for commodity reference price and volume. The omission of new swaps occurred after Cargill changed its swap data reporting from one swap data repository (SDR) to another and failed to update its reporting feeds to fully incorporate data from the new SDR. The inaccurate values for commodity reference price and volume occurred due to an error in Cargill’s reporting code.

The order also finds that Cargill failed in its supervisory duties because it did not have adequate internal processes in place to determine the accuracy or completeness of its swap reporting and did not notice the omission of new swaps from its LTRs and Form 102S submissions for nearly two years.

The Division of Enforcement staff responsible for this case are Brian A. Hunt, Alison B. Wilson, Erica Bodin, and Rick Glaser.

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