Goldman Sachs to pay $1 million for violating CFTC’s record keeping requirements

Sanction - Image by Gerd Altmann from Pixabay

The U.S. Commodity Futures Trading Commission (CFTC) has fined Goldman Sachs & Co. LLC (Goldman) $1 Million.

The penalty was over Goldman’s failure to make and keep certain audio recordings as required under CFTC regulations for swap dealers, as detailed below. 

Goldman began using recording hardware to record the phone lines of trading and sales desks in March 2013. 

In January 2014, according to the CFTC, after the installation of a software security patch in one of Goldman’s offices, the recording hardware in that office restarted prematurely and, as a result, failed to record audio. 

Goldman was unaware of the error for approximately three weeks, until it conducted an unrelated spot-check of the affected office’s recording system.  It was at this point it identified the failure and re-engaged the recording system. 

Photo Credit: Pixabay

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s