Citi, UBS, and Others Settle CFTC Compliance Claims for $8.3 Million Amid Enforcement 'Sprint'

Citi, UBS, and other firms agreed to pay $8.3 million to settle US CFTC claims over compliance-related violations, including recordkeeping and reporting lapses. The penalties were part of the regulator's "enforcement sprint" initiative to encourage firms to settle cases efficiently. UBS paid the largest penalty of $5 million, while Citi Global Markets paid $1.5 million. Other firms, including Banco Santander and BNY Mellon, agreed to pay $500,000 each. The firms neither admitted nor denied the CFTC's claims and have completed remediation efforts.

Several major financial institutions, including Citigroup Inc. and UBS AG, have agreed to pay a total of $8.3 million to settle claims from the US Commodity Futures Trading Commission (CFTC) over compliance-related violations. The penalties are part of an unusual "enforcement sprint" initiative launched by the CFTC in March 2025 to encourage businesses to quickly and fairly resolve compliance issues without involving market abuse or customer harm [1].

UBS and two of its arms agreed to pay the largest penalty of $5 million for allegedly failing to properly supervise trade surveillance programs from at least 2015 to 2024 [1]. Citigroup Global Markets, a registered futures commission merchant and swap dealer, will pay $1.5 million to settle claims it failed to file accurate large trader reports and maintain regulatory records [1]. Other firms, including Banco Santander SA and the Bank of New York Mellon, agreed to pay $500,000 each for recordkeeping and supervision violations [1].

The firms neither admitted nor denied the CFTC's claims and have completed or nearly completed remediation efforts. The CFTC has since shrunk to one remaining commissioner, Acting Chairman Caroline Pham, who announced she will leave for the private sector once a permanent CFTC chair gets installed [1].

Separately, UBS Group AG has reached a $115 million settlement in a derivative action related to its merger with Credit Suisse. The action alleged that former Credit Suisse directors and executives failed to establish effective risk management systems, leading to significant financial losses [2]. The settlement is subject to court approval and may impact UBS's financial and legal standing.

References:
[1] https://www.bloomberg.com/news/articles/2025-09-05/citi-ubs-resolve-cftc-compliance-claims-in-enforcement-sprint
[2] https://www.ainvest.com/news/ubs-reaches-115m-settlement-credit-suisse-derivative-case-2508/