Houston-based Asset Risk Management LLC (ARM) was charged with failing to register as a swap execution facility (SEF) and ordered by the Commodity Futures Trading Commission (CFTC) to pay a $200,000 penalty.


ARM was ordered to cease and desist from any further violations of the Commodity Exchange Act (CEA) and regulations.

“Failing to register as required by the CEA impairs the CFTC’s ability to monitor swap markets and threatens the integrity of the industry,” said acting Director of Enforcement Gretchen Lowe. “The Division of Enforcement will continue to bring actions against firms that are operating unregistered swap execution facilities, including those offering non-electronic methods of trading.”

ARM since September 2017 operated an unregistered SEF that...