Citibank, CGML ordered to pay $550,000 penalty by CFTC
The U.S. Commodity Futures Trading Commission issued an Order filing and simultaneously settling charges against Citibank, N.A. and Citigroup Global Markets Limited, for failing to report Legal Entity Identifier information for swap transactions properly to a Swap Data Repository, failing to establish the electronic systems and procedures necessary to do so, failing to correct errors in LEI data previously reported to an SDR, and failing to perform supervisory duties diligently with respect to LEI swap data reporting, all in violation of CFTC Regulations. The CFTC Order requires Citi to pay a $550,000 civil monetary penalty and to comply with undertakings to improve its LEI swap data reporting. According to the Order, from at least April 2015 to December 2016, Citi failed to report LEIs properly for tens of thousands of swaps. The Order finds that many of Citi's LEI reporting errors stemmed from a design flaw in its swap data reporting systems with respect to swap continuation data. The Order also finds that CBNA and CGML failed to perform their supervisory duties diligently with respect to LEI swap data reporting by failing to enforce existing policies, failing to adequately address compliance with no-action relief where they sought to rely upon such relief, and failing to detect repeated LEI reporting errors.