October 1, 2019
CFTC Orders Société Générale International Limited to Pay $2.5 Million for Swap Data Reporting and Supervision Failures
Washington, DC — On Monday, September 30, 2019, the CFTC filed and settled charges against Société Générale International Limited, a provisionally registered swap dealer, for failing to comply with its swap data reporting obligations as a swap dealer, failing to implement required policies and procedures, and related supervision failures. The order finds that Société Générale International’s swap data reporting failures were widespread and systemic, and occurred in all asset classes and across its reporting obligations under the CEA and Parts 20, 43, 45, and 46 of the CFTC’s regulations. The order further finds that Société Générale International failed to implement policies and procedures reasonably designed to obtain and record facts regarding whether its swap counterparties were U.S. persons, or a conduit affiliate or guaranteed affiliate of a U.S. person, and did not have an effective system to supervise certain activities related to its business.
The CFTC order imposes a $2,500,000 civil monetary penalty on Société Générale International and mandates its compliance with certain undertakings, including continuing its remediation efforts in relation to swap data reporting and updating the CFTC on its efforts and compliance.
The order recognizes that the Commission’s determination of the civil monetary penalty in this matter reflects a substantial reduction from the otherwise applicable penalty based upon Société Générale International’s self-reporting of violations to the Commission, its cooperation with the Division of Enforcement’s investigation, and its comprehensive remediation efforts, which included an analysis and identification of historical errors, implementation of a new swap data reporting architecture, and backreporting corrected data to a swap data repository.
The CFTC thanks and acknowledges the assistance of the National Futures Association with this matter.
The Division of Market Oversight staff members who assisted with this matter are David E. Aron, Thomas Guerin, Meghan Tente, and Owen Kopon. The Division of Swap Dealer and Intermediary Oversight staff members who assisted with this matter are Rajal Patel and Pamela Geraghty.
The Division of Enforcement staff members responsible for this action are Alejandra de Urioste, Chris Giglio, Patryk J. Chudy, Lenel Hickson Jr., and Manal M. Sultan.