Newedge has also been charged with violating a CFTC order to improve the accuracy and timeliness of its large trader reporting.
According to CFTC, Newedge’s large trader position reports submitted from March 2011 through July 2011, had numerous errors including incorrect commodity codes, overstating and understating positions in omnibus accounts, large trader positions, open interest, and issuing incorrect delivery notices.
The errors also include reporting positions as net instead of gross, exchange of futures for physicals or cash positions and exchange of futures for swaps positions that do not exist, and failing to report required positions.
The CFTC’s order requires Newedge to stop violating the requirement to timely submit accurate position reports and notices, and to implement and maintain procedures to prevent and detect reporting violations of the Act and CFTC regulations.
Newedge, with 21 affiliates on a global scale is one of 200 clearing members, futures commission merchants and brokers who collectively submit about 600,000 large trader position reports to the CFTC each day.
