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Deutsche Bank Pays Over $10 Million for Multiple Missteps

The Commodity Futures Trading Commission (CFTC) settled two cases with Germany’s biggest lender and its securities arm. The US regulator ordered Deutsche Bank to pay over $10 million.

The first order imposes a $9 million civil monetary penalty on Deutsche Bank as a five-day systems outage in 2016 revealed the German lender was not prepared for such disasters.

The CFTC filed its suit in New York federal court. The agency alleged that a system outage occurred in April 2016 and it prevented the bank from reporting swap data for multiple asset classes for a period of five days. The US derivatives watchdog also found the data Deutsche Bank managed to submit was incomplete and ‘untimely,’ as it failed to supervise the staff responsible for the data reporting. It was also alleged the German lender did not have adequate ‘business continuity and disaster recovery plans’.

The second transgression that Deutsche Bank settled was related to a spoofing case. The CFTC said its traders made profits by entering spoofing orders in Treasury and Eurodollar futures contracts traded on the Chicago Mercantile Exchange (CME). Even though the bank will pay the $1.25 million settlement it didn’t admit or deny the allegations. 

The CFTC has commended Deutsche Bank for its cooperation after learning of the traders’ misconduct.