U.S. derivatives regulators have charged a couple of firms with alleged rule violations, including data reporting deficiencies and violating capital rules.
The U.S. Commodity Futures Trading Commission (CFTC) on Friday announced it has filed a civil complaint in the U.S. District Court for the Southern District of New York charging Deutsche Bank AG with data reporting violations and supervisory lapses connected to those reporting obligations.
The CFTC and Deutsche Bank filed a joint motion asking the court to appoint a monitor to ensure the bank complies with its reporting responsibilities, and to make recommendations for improving its policies, procedures, infrastructure, and systems. The CFTC is also seeking a civil monetary penalty from the bank.
“Deutsche Bank’s repeated violations warrant the intervention of a court-appointed monitor,” said CFTC director of enforcement, Aitan Goelman. “Deutsche Bank has shown over the last year its inability to comply with its swap reporting responsibilities… The CFTC treats these failures seriously and will take appropriate steps to ensure compliance.”
Separately, the CFTC announced it has also charged foreign exchange dealer, Forex Capital Markets, LLC (FXCM), with alleged violations of the capital rules stemming from a US$200 million shortfall the firm experienced in the wake of a surprise move by the Swiss central bank in January 2015, which caused significant trading losses.
In that case, the CFTC is seeking civil monetary penalties and a permanent injunction against future violations of federal commodities laws.