We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Deutsche Bank (DB) to Settle Data Reporting & Spoofing Cases
Read MoreHide Full Article
Deutsche Bank AG (DB - Free Report) entered a settlement with the U.S. Commodity Futures Trading Commission (“CFTC”) over allegations of market manipulation and violations in swap data reporting, resulting in a penalty of more than $10 million.
With respect to the data violations, the Germany-based lender is required to pay $9 million. The penalty reflects a substantially reduced amount due to Deutsche Bank’s cooperation with CFTC staff like consenting to a court-appointed monitor.
The settlement relates to a complaint filed in August 2016, after the bank was unable to report any swap data for multiple asset classes for about five days due to an unusual swap-reporting platform outage. Also, rather than solving the issue, the bank’s efforts increased existing reporting problems and led to the creation of new reporting problems, many of which violated the 2015 order.
Thus, the regulator appointed a monitor, who would help Deutsche Bank in complying with its swap data-reporting obligations. Also, the bank agreed to improve internal control systems.
The second matter relates to spoofing charges, i.e. manipulating the market by placing orders and then canceling. An administrative order has been issued against Deutsche Bank Securities Inc. (“DBSI”) by the commission, stating that two of DBSI’s Tokyo-based traders engaged in spoofing.
Per the order, in 2013, one of the DBSI traders spoofed in the Treasury futures market, while the other spoofed in the Treasury and Eurodollar futures markets. Deutsche Bank agreed to pay a $1.25-million penalty to settle the allegations.
The Justice Department and CFTC are keeping close vigilance on big banks with regard to spoofing-related practices. Notably, other big banks like Bank of America (BAC - Free Report) , JPMorgan (JPM - Free Report) and HSBC Holdings (HSBC - Free Report) have undergone similar investigations.
Shares of Deutsche Bank have gained 17.1% in the NYSE in the past six months against the 32.4% decline for the industry.
5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.
Image: Bigstock
Deutsche Bank (DB) to Settle Data Reporting & Spoofing Cases
Deutsche Bank AG (DB - Free Report) entered a settlement with the U.S. Commodity Futures Trading Commission (“CFTC”) over allegations of market manipulation and violations in swap data reporting, resulting in a penalty of more than $10 million.
With respect to the data violations, the Germany-based lender is required to pay $9 million. The penalty reflects a substantially reduced amount due to Deutsche Bank’s cooperation with CFTC staff like consenting to a court-appointed monitor.
The settlement relates to a complaint filed in August 2016, after the bank was unable to report any swap data for multiple asset classes for about five days due to an unusual swap-reporting platform outage. Also, rather than solving the issue, the bank’s efforts increased existing reporting problems and led to the creation of new reporting problems, many of which violated the 2015 order.
Thus, the regulator appointed a monitor, who would help Deutsche Bank in complying with its swap data-reporting obligations. Also, the bank agreed to improve internal control systems.
The second matter relates to spoofing charges, i.e. manipulating the market by placing orders and then canceling. An administrative order has been issued against Deutsche Bank Securities Inc. (“DBSI”) by the commission, stating that two of DBSI’s Tokyo-based traders engaged in spoofing.
Per the order, in 2013, one of the DBSI traders spoofed in the Treasury futures market, while the other spoofed in the Treasury and Eurodollar futures markets. Deutsche Bank agreed to pay a $1.25-million penalty to settle the allegations.
The Justice Department and CFTC are keeping close vigilance on big banks with regard to spoofing-related practices. Notably, other big banks like Bank of America (BAC - Free Report) , JPMorgan (JPM - Free Report) and HSBC Holdings (HSBC - Free Report) have undergone similar investigations.
Shares of Deutsche Bank have gained 17.1% in the NYSE in the past six months against the 32.4% decline for the industry.
5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.
See the 5 high-tech stocks now>>