A settlement with the US body, which regulates futures and options markets, is expected in the next few weeks, reported Financial Times, citing two sources familiar with the matter.
The regulator accused the bank’s former trader Matthew Marshall Taylor of concealing the huge size, risks and potential profits or losses associated with the S&P 500 e-mini futures deals five years ago.
In its complaint, the US watchdog also said that Taylor had entered forged e-mini futures trades into the FCM’s manual trade entry system in order to hide the size of the futures contracts.
However, Taylor denied the charges leveled against him.
Goldman Sachs was quoted by the Financial Times as saying that following the CFTC’s complaint against Taylor, the latter has been removed from his job.
CFTC in a complaint filed with US District Court for the Southern District of New York has sought a fine of $130,000 for the violations.
Goldman, which according to CFTC had to face a loss of $118m, has been known for its risk management, but the alleged defrauding case may cause embarrassment to the bank, the report said.
