NEW YORK—The Commodity Futures Trading Commission has issued an order simultaneously filing and settling charges with The Bank of New York Mellon (BNYM) for repeatedly failing to correctly report millions of swap transactions to a registered swap data repository, in violation of a prior CFTC order against BNYM.
In addition, the bank was also cited for failing to properly supervise its swap dealer business as required by the Commodity Exchange Act (CEA) and CFTC regulations.
The order imposes a $5 million civil monetary penalty and incorporates BNYM’s decision to retain an independent compliance consultant to review and provide advice regarding its compliance program, according to Traders Magazine.
Repeated Failures
The order found that from approximately 2018 through 2023 BNYM repeatedly failed to correctly report at least five-million swap transactions and failed to properly supervise its swap dealer business with respect to swap data reporting and monitoring of its associated persons (AP). Many of the reporting failures also constituted a violation of the CFTC’s September 30, 2019 order against BNYM, Traders Magazine added.