The Commodity Futures Trading Commission (CFTC) recently issued an order against Los Angeles, California-based registered futures commission firm Wedbush Securities Inc..Allegations were filed and a settlement was reached for the company's failure to maintain, maintain or provide records kept in accordance with regulations and to carefully monitor matters related to its business as a CFTC registrant。

Wedbush admitted the facts in the order and admitted that its actions violated the Commodity Exchange Act and CFTC regulations。

The order requires Wedbush to pay a $6 million civil penalty, stop further violations of record-keeping and surveillance requirements, and take specific remedial measures set out in the order.。

The order found that from about 2018 to the present, Wedbush employees (including top employees) communicated internally and externally through unapproved channels, including personal text messages.。Wedbush employees send and receive a large number of written communications, including messages related to Wedbush's business as a CFTC registrant, and these messages need to be maintained in accordance with the record-keeping requirements specified by the CFTC。

The command found that Wedbush did not maintain or save thousands of communications, including those related to its merchandise business.。In addition, Wedbush is often unable to provide timely communications to CFTC representatives upon request。

Finally, the order found that as a result of these actions, Wedbush's failure to monitor its business as a CFTC registrant violated the CFTC's record-keeping and regulatory requirements.。

The CFTC then announced that it would impose 2 penalties on BNP Paribas, Societe Generale, Wells Fargo and Bank of Montreal for similar reasons..$600 million fine。