Commodities Exchange Fines ICE $3m over Reporting Errors

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Markets ICE fined $3m over information reporting errors

The US derivatives regulator has enforced Intercontinental Exchange with a $3m fine for what it called information reporting issues at ICE’s New York commodities exchange

The Commodities Exchange Futures Trading Commission said that every day between October 2012 and at least May 2014, the ICE Futures United States exchange sent out the regulator reports and data consisting of errors and omissions, reports Gregory Meyer in New York.

Even after CFTC personnel notified the exchange of the issues the inaccurate reports continued, the company stated.

In recent years the CFTC has taken an increasingly tough role supervising futures exchanges, which themselves function as self-regulatory bodies imposing market rules.

In 2013 CFTC sued the New York Mercantile Exchange, a system of CME Group, and two former staff members for presumably giving secret customer trading details to an external broker.

Aitan Goelman, the CFTC enforcement director, stated:

Today’s action makes clear that registrants who fail to meet their reporting obligations will be held responsible and that the CFTC takes a particularly dim view of reporting violations that continue over many months, specifically after CFTC personnel has consistently signaled the registrant in concern to the problems in its reporting.

ICE declined to comment.

The period in concern started simply as ICE transformed over-the-counter energy derivatives into listed futures agreements at the demand of traders worried about getting caught up by new rules promulgated under the Dodd-Frank financial reform law.

The order is a black eye for ICE, which is referred to as a technological innovator in the exchange market. Besides the fine, CFTC bought ICE to developed a Chief Data Officer and work with 3 extra quality assurance staff dedicated to regulatory reporting.

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1 Comment
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