Swap dealer ordered to pay a $900,000 fine
National Futures Association (NFA), a self-regulatory organization for the U.S. derivatives industry, has issued a press release to inform that has decided to order New York, NY swap dealer Mizuho Capital Markets LLC (Mizuho Capital) to pay a $900,000 fine.
The Decision, issued by NFA’s Business Conduct Committee (BCC), is based on a Complaint issued by the BCC and a settlement offer submitted by Mizuho Capital. The BCC found that Mizuho Capital used inadequate processes to assess the risks of its uncleared swaps and back test, benchmark and validate its margin model.
The BCC also found that Mizuho Capital failed to take the necessary steps to satisfy the initial margin and variation margin collection requirements, failed to supervise diligently its business activities related to margin and model monitoring, and repeatedly submitted inaccurate, incomplete and inconsistent information in reports provided to NFA.
Source: NFA
