CFTC Fines Morgan Stanley $300,000 For Violating Customer Protection Rule

The Commodity Futures Trading Commission fined Morgan Stanley $300,000 for violating the customer protection rule for cleared swaps. The CFTC says the firm failed to maintain sufficient U.S. dollars in segregated accounts on behalf of customers in the U.S. The CFTC said the firm's deficits ranged from approximately $5 million to approximately $265 million, at times representing more than 10% of the amount that the firm was obligated to maintain. The firm was ordered also to bolster procedures required to comply with the currency denomination requirements for cleared swaps customer collateral and to boost training and supervision of its personnel to ensure future compliance.