Bank Settles CFTC Charges for Swap Reporting Failures

A swap dealer settled CFTC charges for failing to timely report swap transactions.

According to the Order, the bank failed to meet reporting deadlines for various swap transaction data, including real-time data, primary economic terms, confirmation, snapshot and valuation data. The CFTC said that these failures were "pervasive," resulted "in over a million errors," and "impact[ed] thousands of swaps" over the course of the relevant period.

The CFTC found that the bank violated CEA Sections 2(a)(13)(F) and 2(a)(13)(G) ("Jurisdiction of Commission") and CFTC Regulations 43.3(a) ("Method and timing for real-time public reporting"), 45.3(b)(1) ("Swap data reporting: Creation data") and 45.4(c) ("Swap data reporting: Continuation data"). These violations also occurred under former regulations (prior to amendment).

To settle the charges, the firm agreed to (i) cease and desist from further violations and (ii) pay a $1,250,000 civil monetary penalty. The CFTC acknowledged the bank's cooperation and self-reporting, which contributed to a reduced penalty.