October 1, 2019
CFTC Orders The Bank of New York Mellon to Pay $750,000 For Swap Reporting Violations
Washington, DC — On Monday, September 30, 2019, the CFTC filed and settled charges against The Bank of New York Mellon, a provisionally registered swap dealer, for numerous violations of the CEA and CFTC regulations relating to swap reporting. BNYM is the world’s largest custody bank and asset servicing company. The order requires BYNM to pay a $750,000 civil monetary penalty, among other sanctions. The order recognizes BNYM’s substantial cooperation during the Division of Enforcement’s investigation of this matter and remediation in the form of a substantially reduced civil monetary penalty.
According to the order, from December 31, 2012 through at least 2018, BNYM failed to correctly report hundreds of thousands of swap transactions to a swap data repository as required by the CEA and CFTC regulations. BNYM’s swap reporting failures included failing to correctly report tens of thousands of foreign exchange (FX) swaps from December 31, 2012 through July 2, 2018, failing report tens of thousands of swap transactions with BNYM affiliates and, from December 31, 2012 through at least December 31, 2018, failing to correctly report bunched trades (transactions with investment managers acting as agents for one or more principals).
The Division of Enforcement staff members responsible for this action are Jason T. Wright, Patricia Gomersall, A. Daniel Ullman II, and Paul G. Hayeck.