News Column

Derivatives: Deutsche Bank fined pounds 4.7m by regulator

August 29, 2014

Julia Kollewe

Deutsche Bank has been fined pounds 4.7m by Britain's financial regulator for misreporting derivatives transactions over five years.

The Financial Conduct Authority said the London branch of Germany's largest bank "incorrectly reported" 29m transactions from November 2007 until April last year. The problem affected all of the branch's transaction reports on equity swap CFD (contracts for difference) - derivatives used by traders to bet on share price movements.

The FCA said Deutsche's failure to submit accurate transaction reports had the potential to hinder the regulator's ability to detect and investigate suspected incidences of market abuse, insider trading and market manipulation.

"Given Deutsche's size and the high volume of transactions that it failed to report accurately, the potential impact of the failures in this case was significant," the FCA said.

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."

Deutsche is the 11th firm to be fined by the FCA for reporting breaches. The bank agreed to settle at an early stage of the investigation, and its fine was reduced by 30% from pounds 6.7m.

The watchdog said it had given banks extensive guidance on how to submit and check reports. Julia Kollewe

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Source: Guardian (UK)

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