Tuesday, November 7, 2017

Cargill fined $10 million

Cargill Inc. has been fined $10 million for providing inaccurate information on swaps to protect its revenue, and for failing to supervise the company’s swap dealers, the Commodity Futures Trading Commission said on Monday.

The CFTC said that beginning in 2013, Cargill did not comply with regulations on thousands of complex swaps that affected hundreds of counterparts.

Swaps are used to manage risk outside of futures and options markets.

Cargill provided inaccurate marks that concealed as much as 90 percent of its mark-up.


Some of the swaps were based on prices derived from Cargill’s ProPricing grain program that helps farmers hedge against price swings.