BNY takes $5M hit over swaps reporting shortfalls
investmentnews.comBank of New York Mellon Corp. will pay a $5 million penalty after a US regulator said that it failed to properly report millions of swaps transactions and supervise a unit that deals the derivatives.
The US Commodity Futures Trading Commission on Monday said BNY repeatedly failed to “correctly report millions of swap transactions to a registered swap data repository.” The CFTC also said BNY violated a prior order the regulator had against the firm.
In a statement, BNY said it “takes its regulatory responsibilities seriously and is pleased to have resolved this matter.”
The reduced penalty reflects BNY’s self-reporting, the CFTC said. Last year, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Bank of America Corp. also settled cases with the CFTC over swaps reporting.
“Accurate reporting is a core pillar of the regulatory regime for swaps, and every individual data field matters,” Ian McGinley, the director of the CFTC’s division of enforcement, said in a statement. “It is essential that swap dealers get this right.”
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