CFTC v. Swapnil Rege (mismarking, 2019)

Settled

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In July 2019 the CFTC filed and settled charges against Swapnil Rege, a former portfolio manager at a Connecticut hedge fund, for mismarking interest rate swaps from June 2016 to April 2017 to inflate his book's profit and win a larger bonus. He must pay a $100,000 penalty and disgorge his $600,000 bonus plus $49,171 in interest, and is banned from CFTC-registered trading and registration for at least three years.

The record

What was ordered

Civil penalty

$100k

Disgorgement

$600k

Prejudgment interest

$49.2k

Total relief

$749k

Alleged gain

—

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The Commodity Futures Trading Commission announced this settled order on July 18, 2019 as release 7979-19. The respondent is Swapnil Rege (1 individual, 0 entities); earlier versions of this record listed the respondent as "Former Hedge Fund Portfolio Manager" and as an entity.

The order finds that from about June 2016 through April 2017 Rege, a portfolio manager at a fund registered as a commodity pool operator, mismarked the valuations of certain interest rate swaps to inflate the profitability of his trading and earn a bigger performance bonus. He did so by manipulating the discount curve settings in the fund's valuation model and by entering wrong day-count conventions on the fixed and floating legs of certain swaps and swaptions, and he asked swap-dealer counterparts for quotes to verify the false model values. The order finds this was fraud under the commodities laws.

Rege must pay a $100,000 civil penalty, disgorge the $600,000 bonus with $49,170.84 of prejudgment interest, and accept a ban of at least three years. The SEC announced a related settled action against him with the same disgorgement and a $100,000 penalty; SEC disgorgement offsets the CFTC's dollar for dollar, so the two orders are not additive.

For the regulator's own account of the facts, read the primary document linked above.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Mismarking — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2019-07-18 CFTC release published

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• CFTC release
• CFTC order or complaint

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 20, 2026. submit a correction.