A recent report reveals that Deutsche Bank has finally agreed to a $9 million settlement for its violations of swap data reporting.
The charges were labeled against the bank over a failure to properly report any swap data for several assets for five days. The records on the irregularities were drawn from April 16, 2016.
Last month, the Deutsche Bank and the U.S. Commodity Futures Trading Commission (CFTC) told the New York Southern District Court that they were still working on the modalities of the case and how it will be settled. The case was brought against Deutsche Bank in 2016, with both parties filing a proposed consent order to conclude the case.
Deutsche Bank is required to comply with the order
Based on the consent both parties submitted to the court two days ago, the bank will pay an agreed amount of $9 million which shall cover for the civil monetary penalty.
Besides, the bank is required to obey an earlier order the commission issued to correctly report all canceled trades in the bank and correct omissions and errors in formerly reported swap data. The order also required Deutsche Bank to correctly supervise its swap data processes.
Deutsche Bank issued other restrictions
The bank is also permanently enjoined and restrained from violating further regulations by failing to meet the swap data report requirements. It has also been ordered to always report swap data with valid legal entity identifiers.
Other restrained activities include failing to maintain sufficient business continuity disaster recovery procedures and failing to correct omissions and errors in formerly reported swap data.
The case against Deutsche Bank began 4 years ago. It was charged with violating a prior CFTC Order, for its failure to supervise its employees involved in swap data reporting, for submitting untimely and incomplete swap data, and its failure to report swap data for different assets within five days.
Deutsche Bank said data reporting system experienced an outage
As the Complaint form sent to CFTC stated, the swap data reporting system of the Deutsch Bank experienced an outage. That prevented the bank from making any report on the data swap for multiple asset classes within five days.
Additional efforts to correct the lapses further exaggerated the current problem, leading to the rise of new reporting issues. According to the bank, many of the new issues violated the CFTC Order entered in September 2015.