The Commodity Futures Trading Commission (CFTC) reached a 5 million-dollar settlement with Bank of New York Mellon (BNY) over claims that the bank habitually failed to accurately report its millions of swap transactions and did not adequately supervise its swaps desk trading. The CFTC disclosed this agreement on Monday, referring to ongoing reporting violations from 2018 through 2023.
According to the CFTC’s order, BNY breached a previous 2019 settlement agreement with the regulator. These failures on the bank’s part included incorrect valuation data from thousands of foreign exchange swaps and interest rate swaps, as well as the like. Among other things, bank failed to fill in necessary fields like buyer and seller identifiers and payment frequency for all exotic interest rate trades.
The CFTC also pointed out that BNY had no written procedures for overseeing communications in any language other than English, which contributed to failure of oversight. This failure involved not only a wide shop-floor area but also recurrent breaches of importance.
