The French financial services provider received a $1.5 million monetary penalty from the regulator and a cease-and-desist order from further violations.
According to the official press release, from 2013 to July 2021 Societe Generale failed to meet its mid-market mark disclosure requirements and to counterparties and reported inaccurate swap valuation data to a swaps data repository. The CFTC stated that during that period the company adjusted such daily marks for profit, hedging or other legally impermissible costs or adjustments.
The order also finds that Societe Generale failed to report certain swap valuation data to an SDR accurately. Societe Generale also failed to maintain an adequate supervisory system and failed to perform its supervisory obligations diligently with respect to mid-market mark disclosures.
Acting Director of Enforcement Vincent McGonagle, said:
This is another in a series of cases the CFTC has brought highlighting the need for swap dealer registrants to have an adequate supervisory system and controls in place. Swap dealer registrants must ensure that they make complete and accurate disclosures to counterparties and accurately report swap valuation data to SDRs, and must also diligently perform their supervisory duties.
The CFTC noted that the there is a substantial reduction in the penalty due to the company’s self-reporting on the violations and cooperation with the investigation.
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