Deutsche Bank Securities Inc. (DBSI) will be repaying “more than $3.7 million to customers,” including $1.48 million in disgorgements as part of a settlement with the SEC, which is alleging that the Deutsche Bank subsidiary misled customers about the pricing of commercial mortgage-backed securities (CMBSes) from March 2011 to August 2015. DBSI, which once operated… Read More >>
CFTC Charges FCM with Neglecting Cybersecurity
AMP Global Clearing LLC (AMP), a registered futures commission merchant (FCM) settled charges with the CFTC over allegations of inadequate cybersecurity protections that led to an unauthorized copying of 97,000 client files. The Chicago-based AMP has been registered as an FCM with the CFTC since 2010, officials say. The CFTC has issued an order and… Read More >>
CFTC Hits DBSI with a $70M Civil Monetary Penalty
Deutsche Bank Securities Inc. (DBSI) will pay a $70 million civil monetary penalty for its attempted manipulation of the U.S. dollar ISDAFIX benchmark, according to a recent CFTC order that both filed and settled the charges against the indirect wholly owned subsidiary of Germany’s venerable Deutsche Bank AG. DBSI officials neither admitted nor denied the… Read More >>
Commerzbank & HSBC Strike Strategic Settlement Partnership
Commerzbank and HSBC have struck a strategic partnership that will see the German bank transferring its securities settlement operations to a newly created joint venture with HSBC Transaction Services. Commerzbank will have a 20 percent stake in the joint venture that will begin operations in early 2020 and continue for an initial period of 10… Read More >>
Wells Fargo Advisors & the SEC Settle SARs Case
A registered broker-dealer/wholly-owned subsidiary of Wells Fargo & Company has settled with the SEC over allegations that it fell behind on its anti-money laundering (AML) responsibilities by failing to properly file 50 Suspicious Activity Reports (SARs) between March 2012 and June 2013, according to the regulator. The settlement requires Wells Fargo Advisors, LLC, based in… Read More >>
Cargill Fined $10M for Alleged Swaps Trading Violations
The CFTC reports that it has simultaneously filed and settled charges against Cargill, alleging that the Minnesota-based agricultural, commodity, and financial services giant sent swaps counterparties and a swaps data repository (SDR) “inaccurate marks” that obscured “up to ninety percent of Cargill’s mark-up.” The settlement order means that Cargill, Inc. will pay a $10 Million… Read More >>
Wells Fargo Broker-Dealers Pay Restitution in ETP Case
Wells Fargo Clearing Services and Wells Fargo Advisors Financial Network have been ordered to pay $3.4 million in restitution to clients that were allegedly misled via “unsuitable recommendations of volatility-linked exchange-traded products (ETPs),” according to the Financial Industry Regulatory Authority (FINRA), a self-regulatory organization (SRO) for broker-dealers. On a Wells Fargo website, the volatility-linked ETPs… Read More >>
Morgan Stanley’s FCM Subsidiary Penalized $500,000
The CFTC has settled charges against Morgan Stanley & Co. LLC, for “failing to diligently supervise the reconciliation of exchange and clearing fees with the amounts it ultimately charged customers for certain transactions on the CME Group, ICE Futures US, and other exchanges.” Headquartered in New York City, Morgan Stanley & Co., or MSCO, is… Read More >>
SEC Penalizes State Street $35M+ in Transition Management Case
The SEC reports that State Street, the venerable, Boston-based financial services company founded in 1792, has agreed to pay more than $35 million to settle charges that it “fraudulently charged secret markups for transition management services and separately omitted material information about the operation of its platform for trading U.S. Treasury securities.” “Transition management,” the… Read More >>
UBS Adds Six Banks to Crypto-Currency Settlement Push
The buzz around crypto-currency blockchain/distributed ledger technology (DLT) continues with UBS’s utility settlement coin (USC), adding six of the world’s largest banks — Barclays, HSBC, State Street, Credit Suisse, MUFG and the Canadian Imperial Bank of Commerce — to its roster. The new members join UBS, Deutsche Bank, Santander, BNY Mellon and the financial services… Read More >>
