Wednesday , March 29 2023

Commerzbank AG fines $ 12 million for breach of swap transaction


The US Commodity Futures Trading Commission (CFTC) said on Thursday that Commerzbank AG ordered a $ 12 million civil penalty to resolve misleading statements, significant omissions, and failed to oversee swap trading activities.

Commerzbank has been registered with the CFTC as a swap dealer since the end of 2012. According to the order from December 31, 2012 through 2018, Commerzbank's failure to supervise swap dealers is systematic and consequently violates the CFTC and thousands of rules on the Commodity Transactions Act (CEA).

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Therefore, in addition to penalties, Commerzbank must have an outside consultant to review the company's swap dealer compliance for two years. During this time, the consultant creates an annual report to assess the swap dealer's compliance with CEA and CFTC regulations.

Commerzbank must submit an annual report to the CFTC. They are also about swap dealer compliance and the company's improvement efforts. The report must be submitted for two years.

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Christopher Giancarlo of the Commodities Futures Trading Commission (CFTC)
Christopher Giancarlo
Source: Reuters

Christopher Giancarlo, chairman of the CFTC, commented on the order: "This is just the latest example of tight regulatory communications and cooperation between the CFTC and BaFin." [Bundesanstalt für Finanzdienstleistungsaufsicht] We look forward to continuing our strong partnership with BaFin, the world's leading financial regulator. "

James McDonald of the Commodity Futures Trading Commission (CFTC)
James McDonald
Source: LinkedIn

James McDonald, executive director of CFTC, stressed: "This case underscores the importance of a complete and accurate reporting of CFTC and swap transactions, supervision and transparency." By ensuring registrants see compliance, compliance and supervision obligations, We will actively work to ensure the integrity of our products. "

CFTC ends investigation on Deutsche Bank

The regulator seemed to be on the CFTC's busy day Thursday, announcing that the CFTC filed suit against Jacob Bourne and settled it. Bourne, former managing director of Deutsche Bank Securities Inc., has unlawfully identified swap accounts to hide large transaction losses.

As a result, he has to pay civil penalties of $ 350,000. The CFTC is not only registered with the CFTC, but also has a permanent ban on transactions with other means of trading.

Accordingly, the enforcement bureau issued its first public listing letter to Deutsche Bank AG and Deutsche Bank Securities Inc., which stipulated that the commodity supervisory authority had completed the investigation of Deutsche Bank. There is.

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