News Column

Deutsche Bank fined £4.7m by FCA over derivatives transactions

August 29, 2014

Julia Kollewe, theguardian.com



Deutsche Bank has been fined 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.

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 6.7m.

McDermott said: "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."

She added that Deutsche had previously been given a private warning in relation to similar transaction reporting failures.


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Guardian Web


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters