Cargill, the world’s biggest agricultural commodities trading company, has been hit with a $10m penalty by a US financial regulator for providing inaccurate information about its derivatives portfolio in an attempt to juice profits.
The US company is a large enough trader in derivatives markets to have registered as a swap dealer, a designation held mostly by Wall Street banks.
The US Commodity Futures Trading Commission said Monday that Cargill issued marks on its swaps that concealed from counterparties and swap databases up to 90 per cent of the company’s full mark-up for the swaps.
James McDonald, CFTC director of enforcement, said that Cargill did so “because of a concern that disclosing its full markup—as it was required to do—could reduce its revenue.”
Cargill’s swap dealer subsidiary, Cargill Risk Management, helps customers in the agriculture, energy and metals markets hedge their risks. Cargill said it “is a strong advocate for open, competitive and efficient swap markets. Cargill takes its legal obligations and market integrity seriously and makes every effort to ensure compliance with all laws and regulations relevant to its businesses.”
Cargill said it has revised its customer reporting and enhanced internal controls and employee training programmes. It neither admits nor denies the findings.
“Cargill is committed to providing its customers with the timely and accurate information they need to make risk management decisions with confidence,” the company said.
http://ift.tt/2izngnW
Tidak ada komentar:
Posting Komentar