The Commodity Futures Trading Commission (CFTC) settled charges against three entities of Credit Suisse for failing to comply with swap data reporting obligations.

Credit Suisse International, Credit Suisse Securities Europe Limited, and Credit Suisse Capital will jointly pay a $1.5 million civil penalty, the CFTC announced June 25. The entities also agreed to cease-and-desist orders.

According to the CFTC, from at least January 2013 to December 2018, one or more of the Credit Suisse entities inaccurately reported swap data. An issue in the reporting engine the entities used caused failure to report the “daily mark” of swap transactions to a swap dealer repository (SDR); instead, mark-to-market notional value of the underlying equity was reported.

The error impacted approximately 91 percent of the Credit Suisse entities’ reportable equity swap positions, according to the CFTC. Further, 14 percent of overall reportable swaps were affected, as were approximately 22 million messages to the SDR.

Credit Suisse discovered the reporting error in October 2018 and represented to the CFTC that it remediated the issue by mid-December 2018 and its reporting of the daily valuation field for equity swaps was accurate from that date onward.

Credit Suisse further represented that it corrected the historical record of all inaccurate reports by Aug. 18, 2020, the CFTC noted.

Jaclyn Jaeger is an editor with Compliance Week and has written on a wide variety of topics, including ethics and compliance, risk management, legal, enforcement, technology, and more.

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