Statement re Civil Settlement with US CFTC
Houston, 17 June 2024 – Trafigura Trading LLC (“Trafigura”) today announces it has reached a civil settlement with the US Commodity Futures Trading Commission (CFTC). Under the terms of the agreement with the CFTC, Trafigura will pay a civil monetary amount of USD55 million to settle the CFTC’s investigation into alleged historical conduct, which Trafigura neither admits nor denies.
The following conduct has been alleged by the CFTC:
- Ambiguity in Trafigura’s employment agreements that failed to clarify the scope of certain contractual non-disclosure provisions.
- Misappropriation of material non-public information from a Mexican trading entity that took place five or more years ago;
- Reckless conduct in the purchase of USGC fuel oil in the Platts eWindow in February 2017, which benefitted Trafigura’s derivatives position;
Since the period in question, Trafigura has voluntarily undertaken significant steps to enhance its compliance programme, including, but not limited to developing and implementing enhanced, risk-based policies and procedures relating to market integrity; enhancing processes and controls around communications relating to market activity; investing additional resources in employee training and compliance testing; and enhancing ongoing compliance monitoring and controls testing processes.
Trafigura has agreed to modify the non-disclosure provisions in its employment, termination, and severance agreements to include language making clear that nothing in those provisions should be understood to limit or prevent communications with governmental authorities about potential violations of law.
ENDS
For further information please contact:
Trafigura’s Press Office: +41 (0) 22 592 4528 or media@trafigura.com
About Trafigura
Trafigura is a leading commodities group, owned by its employees and founded over 30 years ago. At the heart of global supply, Trafigura connects vital resources to power and build the world. We deploy infrastructure, market expertise and our worldwide logistics network to move oil and petroleum products, metals and minerals, gas and power from where they are produced to where they are needed, forming strong relationships that make supply chains more efficient, secure and sustainable. We invest in renewable energy projects and technologies to facilitate the transition to a low-carbon economy, including through H2Energy Europe and joint venture Nala Renewables.
The Trafigura Group also comprises industrial assets and operating businesses including multi-metals producer Nyrstar, fuel storage and distribution company Puma Energy, and our Impala Terminals joint venture. The Group employs over 12,000 people, of which over 1,400 are shareholders and is active in 156 countries.
Visit: www.trafigura.com