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CFTC fines Morgan Stanley USD300,000 over swaps supervision failures 

August 10, 2015


The US Commodity Futures Trading Commission (CFTC) has issued an order requiring Morgan Stanley & Co to pay a USD300,000 civil monetary penalty for failing to hold sufficient US Dollars in segregated accounts in the United States to meet all of its US Dollar obligations to cleared swaps customers. 

The Order also finds that the firm failed to implement adequate procedures and requires Morgan Stanley to cease and desist from violating CFTC Regulations, as charged.

Aitan Goelman, the CFTC’s Director of Enforcement, says: “Since passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFTC has implemented rules to protect swaps customers and market participants, including rules for protection of cleared swaps customer collateral. This action demonstrates that the Division of Enforcement will investigate and pursue violations of these important rules of the road in the swaps market.”

Read more: HedgeWeek

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