CFTC charges Deutsche Bank with swap reporting failures
CFTC officials in the US have charged Deutsche Bank with a series of swap-reporting abuses, repeated failures of supervision and a violation of a previous order.
In a civil complaint filed to a court in Manhattan, the futures and options regulator said the Frankfurt-based bank was unable to report any swap data for multiple asset classes for five days after a systems outage in April.
The glitch exposed a lack of "adequate business continuity plans", the regulator said, adding that Deutsche’s efforts to restore services aggravated old problems and created new ones.
“Deutsche Bank’s repeated violations warrant the intervention of a court-appointed monitor,” CFTC enforcement director Aitan Goelman said in a statement. “Deutsche Bank has shown over the last year its inability to comply with its swap reporting responsibilities under the Commodity Exchange Act and CFTC Regulations.”
This week's charges follow a previous CFTC fine on Deutsche Bank of $2.5m last year for various shortfalls, including failing to report swaps and neglected to correct errors in its reporting.
“We understand the concerns raised by the CFTC and have agreed on steps to resolve this matter,” Deutsche Bank said in a statement. “We continue to work on enhancing our reporting systems, and we are committed to meeting all regulatory requirements.”
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