By Dean Seal


The Commodity Futures Trading Commission has secured a $6 million settlement with U.S. Bank over its employees' use of personal texts and messaging apps that violated record-keeping rules.

The derivatives regulator said Tuesday that Oppenheimer & Co. has separately agreed to pay a $1 million fine to settle similar claims.

The CFTC and other regulators have been cracking down on brokerages over the use of forbidden off-channel communications to do business.

The Securities and Exchange Commission, the CFTC's sister agency, last month fined U.S. Bank and Oppenheimer $8 million and $12 million, respectively, over the same conduct.

In its orders on Tuesday, the CFTC said U.S. Bank and Oppenheimer failed to stop senior employees and other workers from using off-channel communications and didn't retain those communications as required by CFTC regulations.

Both firms admit the facts detailed in the orders and have been ordered to desist from future violations and take certain remedial measures.


Write to Dean Seal at dean.seal@wsj.com


(END) Dow Jones Newswires

03-19-24 1126ET