The Commodity Futures Trading Commission has issued an order filing and settling charges against Natixis, requiting the global bank and swap dealer to pay a $2.8 million penalty for failure to diligently supervise traders on the bank’s New York-based Interest Rate Derivatives Desk (IRD Desk) and its Equity Derivatives Flow and Solution Trading Desk (FAST Desk).
The traders on the IRD Desk and FAST Desk separately engaged in misconduct by mismarking their positions for the purpose of either inflating profits and minimising losses, or to “smooth” out returns, respectively.
As well as the penalty, Natixis is required to cease and desist from violating applicable provisions of the Commodity Exchange Act (CEA) and CFTC regulations, and comply with certain conditions and undertakings.
