Deutsche Bank is facing sanctions after the U.S. Commodity Futures Trading Commission said the company violated multiple swap data reporting rules because of a system outage and had inadequate business continuity and disaster recovery plans.
Bloomberg News reports that on April 16, Deutsche Bank experienced a system failure that kept it from reporting swaps data for multiple asset classes for five days, the CFTC said in a statement Thursday. Efforts to correct the outage led to the discovery or creation of other problems that violated a previous order, the regulator said.
Deutsche Bank and the CFTC agreed to the appointment of a monitor to ensure the bank meets its reporting responsibilities. The regulator also wants to impose a fine and a permanent injunction on the company.
“Deutsche Bank’s repeated violations warrant the intervention of a court-appointed monitor,” CFTC Enforcement Director Aitan Goelman said in a statement. “Deutsche Bank has shown over the last year its inability to comply with its swap reporting responsibilities under the Commodity Exchange Act and CFTC Regulations.”
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