Deutsche failed to properly report 29,411,494 Equity Swap CFD (contracts for difference) transactions. The failure, which affected all Deutsche’s Equity Swap CFD transaction reports in this period, breaches FCA rules on transaction reporting.
The regulator said it was 'particulary concerned' with this case because it has already provided extensive guidance to firms on how to submit and check these reports, has already taken action against several other firms, and previously issued Deutsche with a private warning in relation to other similar transaction reporting failures. The size of the fine reflects the very significant number of misreported transactions. Deutsche agreed to settle at an early stage of the investigation, and received a 30% reduction of their fine.
Tracey McDermott, the FCA’s director of enforcement and financial crime, said:
''Effective market surveillance is critical to maintain the integrity of our markets and depends on accurate and timely reporting of transactions. Deutsche is a major market participant responsible for reporting millions of transactions every year. We have repeatedly highlighted the importance of accurate transaction reporting and taken enforcement action against a number of firms. There is simply no excuse for Deutsche's failure to get this right. Other firms should be in no doubt about our continued focus on this issue."
