JPMorgan Chase, Bank of America and Goldman Sachs Hit With $53,000,000 Fine for Failing to Properly Report Millions of Derivatives Transactions

MARKET_WATCH Crypto

Three of America’s biggest banks are getting hit by the Commodity Futures Trading Commission (CFTC) for failing to properly report millions of transactions in the swaps market. 

 

JPMorgan Chase, Bank of America, and Goldman Sachs have been ordered to pay $15 million, $8 million and $30 million in fines, respectively. According to the CFTC, Goldman Sachs was fined for “unprecedented failures” regarding swap data reporting and disclosures of Pre-Trade Mid-Market Marks (PTMMMs). 

 

The CFTC requires swap dealers like Goldman Sachs to provide PTMMMs to allow counterparties to make informed decisions in regards to entering the swap. The rule stems from the Dodd-Frank Act of 2010. Since the rule went into effect over 13 years ago, the CFTC says Goldman has violated the regulation over one million times. 

 

“While Goldman has backreported more than 20 million swaps to date, the CFTC believes this figure significantly underestimates the true scope of the swap data reporting failures at Goldman. In addition, the order states, on more than one million occasions since 2013, Goldman provided counterparties with PTMMMs that were inaccurate or failed to provide a PTMMM entirely.” 

 

The CFTC says that JPMorgan failed to report data relevant to foreign exchange (FX) swaps. According to the press release, the bank didn’t report more than 150,000 constituent FX spot transactions, and also incorrectly classified certain transactions, effectively leaving them unreported. 

 

As for Bank of America, the CFTC says the group failed to report or correctly report almost four million swap transactions to data repositories. “These reporting failures were caused by 25 types of errors that principally involved swap allocations which are (normally) post-trade events where an agent allocates a portion of an executed swap to clients who are the actual counterparties to the original transaction. 

 

The order also finds [Bank of America] did not provide adequate supervision from approximately 2015 to ensure they complied, timely, with their swap dealer data activity and reporting obligations pursuant to the CEA and CFTC regulations.” Bank of America and JPMorgan admitted to the allegations as part of their swaps settlements, but Goldman Sachs did not.

 

Source : The Daily Hodl by Alex Richardson / October 09, 2023

rayn.finance logo

Automata FRANCE SAS

240 rue Evariste Galois,

06410 Biot,

Sophia Antipolis

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata ICO Ltd

Italian Branch

Via Archimede, 161,

00197 Roma

Italy

The purchase of digital assets is subject to a high market risk and price volatility. Changes in value can be significant and occur rapidly and without warning. Past performance is not a reliable indicator of future performance. The value of an investment and returns can fluctuate both up and down, and you may not recover the amount you invested. RISK WARNING

Automata ICO Limited has a branch in Italy with its registered office at Via Archimede, 161, Roma, Italy, and registered in Italy under number 96550860587 with the Organismo Agenti e Mediatori (OAM) as a Virtual Asset Service Provider (VASP).

Automata France SAS is a company registered in France with the company number 902 498 617. Automata FRANCE SAS is registered with the french Financial Market Authority, l’Autorité des marchés financiers (“AMF”), as a provider of Virtual Asset Service Provider under number E2023-087.

Automata Pay Europe Limited is a partner of Modulr Finance B.V., a company registered in the Netherlands with company number 81852401, which is authorised and regulated by the Dutch Central Bank (DNB) as an Electronic Money Institution (Firm Reference Number: R182870) for the issuance of electronic money and payment services. Your account and related payment services are provided by Modulr Finance B.V. Your funds will be held in one or more segregated accounts and safeguarded in line with the Financial Supervision Act.