Page 26 - 期货和衍生品行业监管动态（2023年8月刊）

期货和衍生品行业监管动态

The order requires Bryant and Bryant Capital to pay, jointly and severally,

$55,655.90 in restitution and a $195,000 civil monetary penalty, and to cease and desist

from any further violations of the Commodity Exchange Act (CEA) and CFTC

regulations, as charged. In addition, the order imposes four-year trading and registration

bans on Bryant and Bryant Capital.

Case Background

According to the order, beginning approximately February 2014 and continuing

through approximately December 2022, Bryant and Bryant Capital acted as

unregistered CTAs through direct outreach, electronic communications, newsletters,

and web-based advertisements. Such solicitations offered advice regarding the value

and advisability of trading in commodity options, futures, and/or swaps in energy

markets and promoted respondents’ paid trading advisory services.

According to the order, these solicitations included numerous false and misleading
statements regarding their business and performance, their expertise and experience in

the energy derivatives markets, client base, past performance, as well as the

applicability of the CFTC’s registration requirements to their business. For example, in

one newsletter, respondents falsely represented that in 2021, they provided services to

47 clients with “proprietary - detailed analyses and made countless recommendations,”

and that in 44 of these 47 analyses, their work had “identified performance markers

resulting in a 27%-39% reduction in 2021 energy costs (the proper term here is

‘avoidance of increased costs’) in addition to showing a minimum 5% immediate

reduction in current energy costs within the first 90 days of engagement.”

To the contrary, as found in the order, these representations were entirely

fabricated. The respondents also falsely represented their business was operating as an

“exempt swap intermediary” that did not require CFTC registration.

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