(Finance) – The Commodity Futures Trading Commission (CFTC) of the United States issued an order simultaneously dismissing and resolving the charges against Transfigure, one of the world’s largest commodity traders, for multiple violations of the Commodity Exchange Act (CEA) and associated CFTC regulations. The order requires Trafigura to pay a civil monetary penalty of $55 million and to implement certain corrective measures to ensure future compliance with the CEA.
The ordinance provides for three violations: between 2014 and 2019, Trafigura traded petrol despite being aware of non-public information that he knew or should have known had been misappropriated by a Mexican business entity; in February 2017, Trafigura has manipulated a benchmark of fuel oil to benefit its positions in futures and swaps, including derivatives traded on entities registered in the United States; between 2017 and 2020, Trafigura required current and former employees to sign employment and/or separation agreements containing non-disclosure clauses that prohibited them from disclosing company information, without exception to law enforcement or regulatory agencies, that unlawfully prevented subjects from voluntarily communicating with Division of Enforcement (DOE) personnel during investigations.
“As seen in today’s order, Trafigura misappropriated material non-public information and engaged in manipulative conduct that affected benchmark rates,” said Ian McGinley, Director of Enforcement. “This enforcement action is yet another example of the CFTC’s commitment to ensure that derivatives markets remain free from trading abuses that undermine their integrity“.
Trafigura neither admitted nor denied the regulators’ allegations in agreeing to settle the case. “Since the period in question, Trafigura has voluntarily undertaken significant steps to improve your compliance program“the company said in a statement.