28th August 2014
The City regulator, the Financial Conduct Authority (FCA), has hit the London arm of Deutsche Bank with a £4.7m fine for incorrectly reporting transactions between November 2007 and April 2013.
Deutsche failed to properly report more than 29m Equity Swap CFD (contracts for difference) transactions. The failure, which affected all Deutsche’s Equity Swap CFD transaction reports in this period, breaches FCA rules on transaction reporting.
Tracey McDermott, the FCA’s director of enforcement and financial crime, said: “There is simply no excuse for Deutsche’s failure to get this right. Other firms should be in no doubt about our continued focus on this issue.”
She added: ”Effective market surveillance is critical to maintain the integrity of our markets and depends on accurate and timely reporting of transactions. Deutsche is a major market participant responsible for reporting millions of transactions every year. We have repeatedly highlighted the importance of accurate transaction reporting and taken enforcement action against a number of firms. The FCA’s overall objective is to ensure that markets work well and with integrity. Accurate and complete transaction reporting by firms is an essential tool in delivering this objective. Where the FCA sees any evidence of firms not acting properly we will not hesitate to act.
McDermott said what was particularly concerning was the fact that the FCA has provided extensive guidance to firms on how to submit and check these reports, and the watchdog has already taken action against several other firms, and previously issued Deutsche with a private warning in relation to other similar transaction reporting failures.
Deutsche agreed to settle at an early stage of the investigation, and received a 30% reduction of their fine.