(Adds more detail, Deutsche Bank comment)
By Huw Jones
LONDON Aug 28 Britain's financial regulator has
fined Deutsche Bank AG 4.7 million pounds ($8
million) for wrongly reporting certain market transactions for
nearly six years.
The Financial Conduct Authority said in a statement on
Thursday the bank failed to accurately report all the
contract-for-difference (CFD) equity swaps, totalling 29
million, it executed between November 2007 and April 2013.
CFDs allow a buyer to trade on movements in a market price
without actually owning the underlying asset. Such trades must
be reported to a regulator under European Union law.
"We have repeatedly highlighted the importance of accurate
transaction reporting and taken enforcement action against a
number of firms," Tracey McDermott, director of enforcement at
the FCA, said.
"There is simply no excuse for Deutsche's failure to get
this right. Other firms should be in no doubt about our
continued focus on this issue," McDermott said.
The regulator previously issued Deutsche with a private
warning about similar transaction reporting failures, the FCA
Deutsche Bank said it had identified a software coding issue
for certain CFD and swap transactions in March 2013. "We
immediately undertook a complete review of our transaction
reporting systems to rectify the problem and strengthen our
control framework," the bank said in a statement.
The FCA said Deutsche's failure to submit accurate
transaction reports had the potential to hinder the regulator's
ability to detect and investigate suspected incidences of market
abuse, insider trading and market manipulation.
"Given Deutsche's size and the high volume of transactions
that it failed to report accurately, the potential impact of the
failures in this case was significant," the FCA said.
The watchdog said it had given banks extensive guidance on
how to submit and check reports.
Deutsche Bank is the 11th firm it has fined for transaction
reporting breaches. The bank's fine would have been 6.74 million
pounds if it had not agreed to settle early with the FCA.
(1 US dollar = 0.6026 British pound)
(Editing by Matthew Scuffham and David Holmes)