ICE Will Pay $3 Million to Settle CFTC Data Reporting Violations

Intercontinental Exchange Inc. will pay $3 million to resolve U.S. Commodity Futures Trading Commission claims that it reported flawed derivatives trading data to regulators daily for more than a year and a half.

The Atlanta-based company submitted inaccurate records to the CFTC on every reporting day from October 2012 to May 2014, the agency said in a statement Monday. ICE’s U.S. futures exchange, which handles energy, agricultural and financial trading, continued the errors after being notified by agency staff, the CFTC said.

“The CFTC cannot carry out its vital mission of protecting market participants and ensuring market integrity without correct and complete reporting by registrants,” Aitan Goelman, the CFTC’s enforcement director, said in the statement.

The CFTC, which has expanded power to monitor energy and financial markets under the 2010 Dodd-Frank Act, uses reports from exchanges such as ICE’s to help with surveillance and enforce limits on speculative trading.

According to the settlement, ICE said the errors were a result of technology changes and didn’t affect data disclosed to the public. Brookly McLaughlin, a spokeswoman for the company, declined to comment.

As part of the agreement with the CFTC, ICE must bolster its regulatory reporting capabilities, including by creating a new chief data officer and having three additional employees overseeing the records.

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