The Commodity Futures Trading Commission (CFTC) has issued a US$5 million civil monetary penalty to the Bank of New York Mellon (BNYM) following its failure to report millions of swap transactions to a registered swap data repository.
These actions were in violation in a previous CFTC order against the firm, the commission stated, and demonstrated a failure in the supervision of BNYM’s swap dealer business as required by the Commodity Exchange Act and CFTC regulations.
An order filing and settling charges with BNYM was issued on 26th August. Alongside the penalty, BNYM will retain an independent compliance consultant to review and advise on its compliance programme, it said.
Ian McGinley, director of the division of enforcement at the CFTC, commented: “Accurate reporting is a core pillar of the regulatory regime for swaps, and every individual data field matters. It is essential that swap dealers get this right. In that vein, I commend BNYM for its extensive cooperation, remediation, and decision to retain an independent compliance consultant to assist the bank in improving its compliance program and preventing the reoccurrence of misconduct.”
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