CFTC Files Suit Against Royal Bank of Canada (“RY”) – KKBS Investigates.


In a press release issued April 2, 2012, the CFTC announced that it filed suit against RY alleging that it engaged in a multi-hundred million dollar wash sale scheme in connection with exchange-traded stock futures contracts.  The CFTC essentially alleges that RY engaged in non-competitive or sham trades of futures contracts with its subsidiaries.  The CFTC alleges that the trades were not at arm’s length as required by law.  It further alleges that the trades were a scheme designed to take advantage of lucrative Canadian tax benefits by holding certain public companies’ securities in its accounts.  KKBS is analyzing this issue and looking into the potential impact this may have on RY shareholders.

The CFTC press release can be found at