NEW YORK (Reuters) - A Deutsche Bank AG DBKGn.DE unit will pay more than $4 million to settle allegations that it failed to properly report data on millions of options trades, according to a Financial Industry Regulatory Authority (FINRA) document.
The alleged conduct between 2010 and 2015 violated FINRA rules aimed at identifying holders of large options positions who may be trying to manipulate the market or violate other industry rules, the Wall Street watchdog said in its settlement with the unit, Deutsche Bank Securities Inc.
Deutsche Bank did not admit to or deny FINRA’s findings, according to the settlement, which was dated Monday and posted to FINRA’s website on Tuesday.
A Deutsche Bank spokesman declined to comment on the settlement, which included a fine of $4.07 million (2.8 million pounds) to FINRA.
Deutsche Bank failed to report certain information during the period and also inaccurately reported other details, FINRA said.
NASDAQ NDAQ.O and the International Securities Exchange also took part in the investigation that led to the settlement, the document showed.
At issue is a requirement to report options data to an industry-wide system that tracks large options positions.
The data must be accurate so that FINRA and other regulators can use it to analyse details that may signal insider trading, manipulation and other misconduct, FINRA said in the settlement.
Deutsche Bank also lacked an adequate supervision system to ensure that the firm was complying with the rule, FINRA said.
Deutsche Bank has made enhancements to its reporting systems after hiring an independent consultant to review them, the settlement document said.
Reporting by Tariro Mzezewa; Editing by Fiona Ortiz
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