I strongly support this enforcement action against BNP Paribas for violating swap data reporting requirements for more than five years, violating swap disclosure requirements, and for failure to supervise.  BNP failed to report accurately millions of swap transactions.  Certain swap dealer compliance issues were not timely identified, with the result that these violations persisted for years.  Despite BNP compliance personnel flagging a swap reporting issue, BNP did not adequately and timely address the issue apparently due to concerns that a comprehensive fix would take significant time and resources.  I also note that BNP or affiliated entities have been the subject of CFTC or other federal enforcement actions.

Swap data reporting is fundamental to post-crisis financial regulation.  It is one of the key measures in the Dodd-Frank Act to bring transparency to risk previously hidden.  This transparency is necessary for regulators to identify risk, particularly risk that could become systemic.  Transparency is also necessary for the CFTC to fulfill its mission to promote market resilience and integrity so that our markets remain the strongest and safest in the world.  The CFTC conducts market and financial surveillance—surveillance that relies on swap dealers fulfilling their reporting obligation to provide accurate and complete swap data.

This case should serve as a message to all swap dealers that the CFTC will bring justice for failures in swap data reporting.  It has been more than 10 years since the Dodd-Frank Act swap data reporting rules have been in place.  It is far past time for swap dealers to come into compliance with the law.