Wells Fargo Swap Dealer Settles for $2.5m With NFA

Published On September 2, 2019

2 September 2019: Wells Fargo Bank has agreed to pay $2.5m to the US National Futures Association (NFA) settling charges that it had misled a customer about pricing. 

Wells had told the customer it would would set the price for a four-month Canadian Dollar forward contract at an average price of Canadian dollar spot contracts it had purchased on 27 August 2014. However, it in fact priced the forward at a higher price. 

NFA submitted that such activity ran contrary to the Commodity Futures Trading Commission rule that requires swap dealers to engage in fair and balanced communication with a counter-party.