Nasdaq Futures to pay $22 million to settle charges over perk program, CFTC says
Adds details from CFTC's statement throughout, commissioner's dissent in last paragraph
Aug 29 (Reuters) -Nasdaqhas agreed to pay $22 million to settleU.S. Commodity Futures Trading Commission (CFTC) charges that its former energy contract marketfailed to disclose details of perks offered tocertain traders.
Nasdaq Futures Inc, which operated a market for energy commodity futures contracts from July 2015-2018, made false and misleading statements to the CFTC regarding an incentive program, the regulator said in a statement on Thursday.
Under the program, market makers and certain customers received payments based on the total volume of contracts they traded. This aspect was never disclosed to the agency, as required by U.S. law and regulation, CFTC said.
A spokesperson forNasdaq Inc NDAQ.O, which sold the futures exchange business in November 2019, said the firm is pleased to have resolved the matter with the CFTC.
The firm withheld accurate information from market participants in a "significant violation" of its obligations and legal requirements that apply to exchanges designated by the agency, CFTC enforcement director Ian McGinley said in a statement.
Republican Commissioner Caroline Pham dissented in the enforcement action, saying the settlement is "about beating a dead market" over incentive programs that are commonplace in financial markets.
Reporting by Douglas Gillison and Chris Prentice; Editing by Richard Chang
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