The US (CFTC) has ordered Commerzbank AG to pay a civil penalty of $12 million to settle charges that it made misleading statements and material omissions as well as failed to supervise its swap dealing activities, the agency said on Thursday.
Commerzbank has been registered with the CFTC as a Swap Dealer since the end of 2012. According to the Order, from December 31, 2012, until at least 2018, the commodities regulator found that Commerzbank’s failure to supervise its Swap Dealer was systematic and resulted in thousands of regulation violations of the CFTC and Commodity Exchange Act (CEA).
As a result, in addition to the fine, the Order requires Commerzbank to retain an outside consultant who will review the firm’s swap dealer compliance for two years. During this time, the consultant will create annual reports that will assess the swap dealer’s compliance with CEA and CFTC regulations.
Commerzbank itself will also have to submit annual reports to the . These will also be regarding swap dealer compliance and the firm’s remedial efforts. The reports will need to be submitted for a period of two years.
Source: Reuters
Source: LinkedIn
CFTC closes investigation into Deutsche Bank
It seems that Thursday was a busy day for the CFTC, as the regulator also announced that it has filed and settled charges against Jacob Bourne. A former managing director of Deutsche Bank Securities Inc., Bourne was found to have illegally mismarked swap valuations to hide large trading losses.
As a result, he will have to pay a civil penalty of $350,000. The CFTC has also permanently banned him from trading on exchange, as well as being registered with the CFTC, among other measures.
Following this, the Division of Enforcement has now issued the first public declination letter to both and Deutsche Bank Securities Inc. The letter states that the commodities regulator is now closing its investigation into Deutsche Bank.
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