For Release: February 14, 2008
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that Paradigm Capital Management LLC (PCM) of New York, a registered with Commodity Pool Operator, will pay a $75,000 civil monetary penalty for failing to distribute and file its commodity pools’ annual reports in a timely manner.
Specifically, the CFTC order finds that PCM, as a CPO for commodity pools that operate as funds-of-funds, failed to distribute to pool participants and file with the National Futures Association one or more of its commodity pools’ annual reports in a timely manner, in violation of a CFTC regulation.
An annual report is designed to “provide [pool] participants with the information necessary to assess the overall trading performance and financial condition of the pool.” (See Commodity Pool Operators and Commodity Trading Advisors, Final Rules, 44 Fed. Reg. 1918 (CFTC Jan. 8, 1979) (announcing the adoption of Rule 4.22).) Without timely reporting, the CFTC’s goal of providing pool participants with complete and necessary data is hampered.
The following CFTC Division of Enforcement staff were responsible for this case: Linda Y. Peng, David MacGregor, Lenel Hickson, Jr., Stephen J. Obie, and Vincent McGonagle.
Last Updated: February 14, 2008