Deutsche Bank Will Pay Over $10 Million Penalty to Settle CFTC Charges


Deutsche Bank will pay over $10 million to settle two Commodity Futures Trading Commission or CFTC charges of market manipulation and data reporting violations.

19 June, 2020 | AtoZ Markets – CFTC announced a settlement agreement of two enforcement with Deutsche Bank. Deutsche Bank will pay a total $10.25 million penalty to settle two CFTC charges. The Bank will pay a $9 million penalty for accusations of swap reporting violations and business continuity plan & disaster recovery plan failures. CFTC Director of Enforcement James McDonald also said:

“This case reaffirms the importance of proper reporting among registered swap dealers. The Commission has charged with monitoring and addressing systemic risks in our swaps markets. We can’t fulfil these obligations if we don’t have accurate reporting of the swaps dealing activity of our registrants.”

Deutsche Bank Will Pay Penalty Over Reporting Failures and Spoofing

The CFTC alleged that the Bank was unable to report swap data for multiple asset classes over five days due to a system outage in April 2016. The regulator also pointed out that the data were incomplete and untimely. The Bank failed to supervise the staff responsible for swap data reporting. The Bank also did not have a proper “business continuity plan and disaster recovery plan”.

Deutsche Bank will pay a $1.25 million penalty to resolve CFTC allegations. CFTC said, two of the Bank’s traders were carrying out market manipulation in CME’s Treasury futures and Eurodollar futures contracts. The regulator also appreciates Deutsche’s cooperation since becoming aware of trader misconduct, and have speeded resolution of the issue and reduced penalties. McDonald also said:

“The CFTC is committed to ensuring the integrity of the marketplace. This enforcement action is yet another example of the CFTC’s commitment to prosecuting conduct that undermines that integrity aggressively.”

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