Boston, MA 08/28/2014 (wallstreetpr) – According to reports, Deutsche Bank AG (USA) (NYSE:DB) has been charged with £4.7m for not reporting transactions in a proper way. DB failed to report 29.41 million (29,411,494) Equity Swap contracts for difference transactions in the pre-specified timeline and breached the Financial Conduct Authority rules on transaction reporting.
What’s the issue:
Effective market surveillance plays an important role in maintaining the integrity in the market. It can only be possible by putting accurate and timely reports of various transactions in place. When it comes to Deutsche Bank AG (USA) (NYSE:DB), it is one of the major players of the market and reports several million transactions each year. There are set guidelines for reporting accurate transactions and the firms that fail to meet these guidelines are penalized.
According to Tracey McDermott, Director Enforcement and financial crime of FCA, “There is no excuse for Deutsche Bank AG (USA) (NYSE:DB)’s mistake; hence, it will have to pay a charge of £4.7m. It will be learning for other firms as well.” DB is considered as one of the major players in the market; hence, FCA has given a clear indication to other firms about the continued focus that it seeks to maintain. It will be learning for those firms that take things for granted.
The main objective of FCA is to make sure that all the transactions are reported in the perfect way without any mistake. Those who fail to do so will have to pay a penalty for their mistakes. Market reports contain sensitive data that is used by FCA in various ways i.e. market manipulation and insider trading. If a company fails to report its transactions in a proper way, then it can impact in a big way. There will be no hesitation in penalizing the firms that fail to meet the set guidelines of FCA. Deutsche Bank AG (USA) (NYSE:DB) has accepted its mistake and agreed to settle the issue; therefore, FCA has decided to give it 30% concession from total fine.