Washington D.C. – Credit Suisse International, Credit Suisse Securities Europe Limited, and Credit Suisse Capital LLC have agreed to pay $1.5 million to settle charges brought by the Commodity Futures Trading Commission (CFTC) for failing to accurately report swap data, according to an order issued Friday.
The CFTC alleges that the Credit Suisse entities, all provisionally registered swap dealers, submitted inaccurate daily valuation data for the majority of their equity swap transactions to a swap data repository (SDR). The violations occurred between January 10, 2013, and December 2018.
Specifically, the firms reported the notional value of the underlying equity instead of the required “daily mark” for approximately 91 percent of their reportable equity swap positions, representing 14 percent of their total reportable swaps. This error impacted roughly 22 million messages sent to the SDR, stemming from a single issue within their reporting engine.
Credit Suisse discovered the error in October 2018 and claimed to have remediated it by mid-December 2018. They further stated that they corrected the historical record of inaccurate reports by August 18, 2020. As part of the settlement, the entities are required to cease and desist from violating the Commodity Exchange Act and CFTC regulations.
The CFTC acknowledged the assistance of staff from the Division of Data and the Market Participants Division, as well as the National Futures Association, in the investigation. The case was led by James Deacon, Erica Bodin, Aimée Latimer-Zayets, Rick Glaser, and former staff member Kim Bruno from the Division of Enforcement.
Source: CFTC.gov
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