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CFTC fines futures broker Mizuho in settlement over secured fund lapses

Jan 04 2013 Stuart Gittleman, Compliance Complete

The Commodity Futures Trading Commission on Thursday sanctioned Mizuho Securities USA Inc. for failing to provide timely notice of secured fund deficiencies and for failing to diligently supervise its employees' handling of such deficiencies. Without admitting or denying the CFTC's findings, Mizuho Securities, a New York-based futures commission merchant, or FCM, consented to being fined $175,000 and ordered to cease and desist from violating CFTC Regulations 1.12(h) and 166.3. Mizuho also agreed to have internal audit perform a detailed review of, and report on, the firm's margining, segregation and cash transfer areas, and to ensure that internal audit's recommendations are implemented within 90 days of completing the report. Mizuho must thereafter review its compliance procedures for handling segregated and secured funds at least annually, and must also implement strengthened compliance procedures whenever necessary to comply with the Commodity Exchange Act and CFTC regulations. The

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