The U.S. Commodity Futures Trading Commission (CFTC) is sanctioning Barclays Bank plc for swap reporting violations.
On Tuesday, the U.S. derivatives regulator filed and settled charges against Barclays, which requires it to pay US$4 million, and to cease and desist from its breaches of derivatives rules and regulations on swap transaction reporting.
According to the CFTC’s order, from 2018 through 2023, Barclays failed to correctly report millions of swap transactions, or failed to report them on a timely basis.
“The reporting failures during the relevant period included misreporting due to the use of a duplicate swap identifier; incorrect reporting of primary economic terms; misreported time stamps; errors in connection with continuation data reporting; and late reporting,” the CFTC said in a release on Tuesday.
The CFTC acknowledged that Barclays cooperated extensively with its investigation — including proactively flagging reporting issues during the investigation and voluntarily providing detailed information regarding the violations. It also noted that the firm took measures to fix its swap reporting processes.
These cooperation and remediation efforts resulted in a reduced monetary penalty, the regulator said.
“Over the last year, the CFTC has imposed over US$60 million in penalties on six registered swap dealers, including Barclays here, in connection with swap data reporting violations,” said Ian McGinley, director of enforcement at the CFTC, in the release.
“This resolution, which also includes admissions, reflects the division’s ongoing commitment to ensure the costs of violating the law outweigh the costs of compliance.”