Markets
JPM

Citigroup to Pay Penalty for Violations in Swap Reporting

Citigroup Inc.C has agreed to pay $550,000 to the Commodity Futures Trading Commission ("CFTC"), as penalty for violations in reporting swap transaction and absence of proper reporting procedure since April 2015 to December 2016.

Citibank and London-based Citigroup Global Markets, two subsidiaries of Citigroup, have been charged for improper reporting of Legal Entity Identifier data for swap transactions. They have also been accused of failing to remove errors in such data. However, the commission added that the company cooperated well during the investigation.

Citigroup reported the trades as "name withheld" instead of identifying the parties involved in the transaction. The regulator also said that the company's errors were a result of a design flaw in its swap data reporting system.

Swap reporting became mandatory since 2010 Dodd-Frank was passed. The law made it compulsory to report such transactions to regulators so as to keep a track of derivative prices. Also, the aim was to prevent uncertainty in the derivatives markets.

Many companies have faced troubles over the years with regard to reporting trades quickly and with accuracy using technology. In 2016, the CFTC had fined a number of banks such as Deutsche Bank AG DB , JPMorgan Chase & Co. JPM and Barclays PLC BCS over failure to report derivative trades.

In August 2017, Citigroup had agreed to resolve a private U.S. antitrust lawsuit that accused it of rigging London Interbank Offered Rate by paying $130 million.

Lately, Citigroup has been focused on settling all the pending lawsuits and regulatory probes. As a result, the bank's financial performance was adversely impacted by higher legal charges.

More Stock News: This Is Bigger than the iPhone

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

J P Morgan Chase & Co (JPM): Free Stock Analysis Report

Citigroup Inc. (C): Free Stock Analysis Report

Barclays PLC (BCS): Free Stock Analysis Report

Deutsche Bank AG (DB): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

JPM BCS DB C

Other Topics

Stocks

Latest Markets Videos