CFTC Fines E*TRADE For Allegedly Destroying Customer Records

By Francine McKenna Markets MarketWatch Pulse

The U.S. Commodity Futures Trading Commission settled charges against Chicago-based E*Trade Securities LLC , an introducing broker, and E*Trade Clearing LLC, the firm's futures broker-dealer, for record-keeping and supervision violations. According to the CFTC order, between October 2009 and January 25, 2014 E*Trade Securities and E*Trade Clearing allowed audit trail logs for their customers trades to be destroyed after 10 days rather than that maintaining them for use by regulators who use the records to monitor the firm's compliance with laws and regulations. E*Trade did not admit or deny the findings but will pay a $280,000 penalty for both business units.

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